Can a Learningrx franchisee directly market to customers outside their territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- (f) to implement multi-area marketing programs, including regional pricing and service programs which may allow Franchisor or others to solicit or sell clients or otherwise dictate service and pricing strategy, anywhere.
Franchisor reserves the right to issue mandatory policies to coordinate such multi-area marketing programs, including the right to establish minimum or maximum pricing for such programs, as permitted by law; and
- 9.1 Solicitation. Except as stated in this paragraph, Franchisee may not directly market to or solicit customers who reside outside the Territory. However, Franchisee will have the exclusive right to service customers within the Territory generated by Multi-Area Marketing Programs except through the Internet.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees generally cannot directly market to or solicit customers outside of their designated territory without express written permission from Learningrx. However, there is an exception: franchisees have the right to service customers within their territory who are generated by Multi-Area Marketing Programs, excluding those found via the Internet.
If a Learningrx franchisee wishes to place advertising that is primarily targeted towards another territory, they must obtain express written permission from Learningrx, unless the advertising is part of a cooperative effort with the franchisee in the targeted territory. This suggests that cooperative advertising efforts with other franchisees are encouraged and may be more readily approved.
Learningrx also implements multi-area marketing programs, which may include regional pricing and service programs. These programs allow Learningrx or others to solicit or sell to clients and dictate service and pricing strategies across different areas. Franchisees are required to adhere to mandatory policies to coordinate these multi-area marketing programs, including potential minimum or maximum pricing guidelines, as permitted by law. This highlights the importance of franchisees coordinating with Learningrx on marketing efforts to ensure compliance and consistency across the brand.