factual

Is the franchisee required to locate the Learningrx center close to the center of the territory?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee is solely responsible for locating a site for the Business and negotiating a lease for the property.

Upon request, Franchisor will provide limited advice and assistance to Franchisee in selecting a site and analyzing a location and in negotiating a lease.

Franchisor will analyze a location by examining population density, traffic patterns, proximity of the proposed location to any other LearningRx Centers, or any other reasonable criteria, as set forth in Section 10.2.

Franchisee agrees that the location of the Center is a factor in the potential for success of the Business and the location will be located close to the Center of the Territory.

Franchisor may reject any location in its discretion, but consent will not be unreasonably withheld.

If Franchisee and Franchisor cannot agree on the site selection, then Franchisee must select two (2) alternative sites.

Franchisor shall provide Franchisee with an evaluation of each site as described above.

Franchisor shall approve or disapprove Franchisee's proposed site within thirty (30) days of the date Franchisor receives written notice of the proposed site from Franchisee.

Any site not approved in writing by Franchisor within the thirty (30) day time period shall be deemed disapproved.

However, Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the franchisee is responsible for finding a location for the business. Learningrx will provide limited advice and assistance with site selection, including analyzing the location based on factors like population density, traffic patterns, and proximity to other Learningrx centers. The franchisee agrees that the location of the center is a factor in the potential success of the business and that the location will be close to the center of the territory. However, Learningrx has the right to reject any location at its discretion, but consent will not be unreasonably withheld. If the franchisee and Learningrx cannot agree on the site selection, the franchisee must select two alternative sites for Learningrx to evaluate.

Learningrx will approve or disapprove a proposed site within thirty days of receiving written notice from the franchisee. A site not approved in writing within this period is deemed disapproved. However, Learningrx's assistance does not constitute a representation or warranty regarding the property or the lease. The franchisee may operate the franchised business only at the premises designated in the Franchise Agreement and may not relocate without Learningrx's prior written approval, which may be withheld for any reason.

Relocating the center is subject to the site selection and lease provisions in the Franchise Agreement and Operations Manual. The franchisee will not be required to pay a relocation fee for the first relocation request within the initial or any successor term. However, a $250 relocation fee is required for a second relocation, and $500 for a third relocation within the same term. Any relocation will be at the franchisee's sole expense, and Learningrx's approval will be based on factors such as population density, income levels, location guidelines, and proximity to other Learningrx centers.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.