What must a Learningrx franchisee certify if no lawsuits or claims are threatened or filed during the year?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
At the end of each year of the term of this Agreement, Franchisee must submit to Franchisor a certified statement listing and describing all performance-based lawsuits or potential claims threatened or actually filed against Franchisee, its owners, managers, employees or agents in connection with the operation of the Business, or if no such lawsuits or claims are threatened or filed during that year, a certified statement to that effect.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, at the end of each year, a franchisee must submit a certified statement to Learningrx indicating whether any performance-based lawsuits or potential claims have been threatened or filed against the franchisee, its owners, managers, employees, or agents in connection with the operation of the business. If no such lawsuits or claims have been threatened or filed during that year, the franchisee must submit a certified statement to that effect.
This requirement ensures that Learningrx is informed about any potential legal issues that could affect the franchise or the Learningrx system as a whole. By requiring a certified statement, Learningrx places the onus on the franchisee to accurately report any legal issues. This allows Learningrx to assess the potential impact and take appropriate action to protect its brand and reputation.
For a prospective Learningrx franchisee, this means maintaining thorough records of any incidents or disputes that could lead to legal action. Even if no lawsuits are ultimately filed, any threatened claims must be documented and reported. Failing to provide an accurate and timely certified statement could be considered a breach of the franchise agreement, potentially leading to penalties or termination.