What is a Learningrx franchisee prohibited from doing with Trade Secrets after the franchise term?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of the mutual covenant and obligations contained herein, the receipt and sufficiency of which are acknowledged, the parties agree as follows:
CONFIDENTIALITY AGREEMENT
-
- Franchisor and/or Franchisee may disclose to Franchisee Affiliate some or all of the Trade Secrets relating to the System. All information and materials, including, without limitation, Operations Manuals, drawings, marketing techniques, specifications, techniques and compilations of data that Franchisor provides to Franchisee and/or Franchisee Affiliate shall be deemed confidential Trade Secrets for the purposes of this Agreement.
-
- Franchisee Affiliate shall receive the Trade Secrets in confidence and shall, at all times, maintain them in confidence, and use them only in the course of his employment or association
with a Franchisee and then only in connection with the development and/or operation by Franchisee of a LearningRx Business for so long as Franchisee is licensed by Franchisor to use the System.
-
- Franchisee Affiliate shall not at any time make copies of any documents or compilations containing some or all of the Trade Secrets without Franchisor's express written permission.
-
- Franchisee Affiliate shall not at any time disclose or permit the disclosure of the Trade Secrets except to other employees of Franchisee and only to the limited extent necessary to train or assist other employees of Franchisee in the development or operation of a LearningRx Business.
-
- Franchisee Affiliate shall surrender any material containing some or all of the Trade Secrets to Franchisee or Franchisor, upon request, or upon termination of employment by Franchisee, or upon conclusion of the use for which such information or material may have been furnished to Franchisee Affiliate.
-
- Franchisee Affiliate shall not at any time, directly or indirectly, do any act that would or would likely be injurious or prejudicial to the goodwill associated with the Licensed Marks, the Trade Secrets or the System.
-
- All Operations Manuals are loaned by Franchisor to Franchisee for limited purposes only and remain the property of Franchisor and may not be reproduced, in whole or in part, without Franchisor's written consent.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, both the franchisee affiliate and spousal affiliate agree to protect Learningrx's trade secrets. Franchisee Affiliates and Spousal Affiliates must keep the trade secrets confidential at all times and only use them when associated with a Learningrx franchisee. This use is restricted to the development and operation of a Learningrx business while the franchisee is licensed to use the Learningrx system.
Specifically, the franchisee affiliate and spousal affiliate are prohibited from making copies of any documents or compilations containing Learningrx's trade secrets without express written permission from Learningrx. They cannot disclose or permit the disclosure of trade secrets, except to other Learningrx employees of the franchisee, and only to the extent necessary to train or assist those employees in the development or operation of the Learningrx business.
Upon request or termination of employment, the franchisee affiliate and spousal affiliate must surrender any material containing Learningrx's trade secrets to the franchisee or Learningrx. They are also prohibited from taking any actions that could be harmful or prejudicial to the goodwill associated with the Learningrx licensed marks, trade secrets, or the Learningrx system. All operations manuals remain the property of Learningrx and cannot be reproduced without written consent.