What is the LearningRx franchisee required to refrain from doing upon termination of the franchise agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
of the Marks, in Franchisor's sole and absolute discretion. Franchisee must notify the telephone, Internet, email, electronic network, directory, and listing entities of the termination or expiration of the Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and must authorize their transfer to the Franchisor or any new franchisee as may be directed by the Franchisor. The Franchisee acknowledges as between the Franchisor and the Franchisee, the Franchisor has the sole rights to, and interest in, all numbers, addresses, domain names, locators, directories and listings used by Franchisee to promote the System. The Franchisee hereby irrevocably appoints the Franchisor, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest, to execute such directions and authorizations as may be necessary or prudent to accomplish the foregoing. Such appointment is evidenced by Attachment IV;
- (d) cease doing business under any of the Marks, cancel any assumed name registration that includes any of the Marks, assign all domain names and Internet directory listings that contain the Marks to Franchisor, and refrain from identifying itself as a LearningRx franchisee;
- (e) allow Franchisor or representatives access to the Business and the computer systems to verify and secure Franchisee's compliance with the obligations under this Agreement;
- (f) allow Franchisor to make a final inspection and audit of Franchisee's computer system, books, records and accounts; and
- (g) abide by the terms of the required noncompetition covenant.
- 13.3 Failure to Cease or Remove Identification. If, within thirty (30) days after termination of this Agreement by Franchisor, Franchisee fails to remove all displays of the Marks from the Center which are identified or associated with the System, Franchisor may enter the Center to effect removal. In this event, Franchisor will not be charged with trespass nor be accountable or required to pay for any displays or materials.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to LearningRx's 2025 Franchise Disclosure Document, after termination of the franchise agreement, a franchisee must cease certain activities. Specifically, the franchisee must stop conducting business under any of LearningRx's trademarks and cancel any assumed name registrations that include these marks. They are also required to assign all domain names and internet directory listings containing the LearningRx marks to the franchisor. Furthermore, the franchisee must refrain from identifying themselves as a LearningRx franchisee.
These stipulations ensure that the former franchisee does not continue to benefit from LearningRx's brand recognition and goodwill after the agreement ends. This protects LearningRx's brand identity and prevents potential confusion among customers. The franchisee must also allow LearningRx or its representatives access to the business and computer systems to verify and secure compliance with these obligations.
Additionally, LearningRx retains the right to conduct a final inspection and audit of the franchisee's computer system, books, records, and accounts. The franchisee is also obligated to adhere to the terms of any non-competition agreement. Failure to remove all displays of the LearningRx marks from the center within 30 days after termination allows LearningRx to enter the center and remove them, without being held liable for trespass or any costs related to the displays or materials. LearningRx is also appointed as the franchisee's attorney to amend or terminate any registrations or filings containing the marks if the franchisee fails to do so.
These post-termination obligations are typical in franchising to protect the brand and prevent unfair competition. Prospective LearningRx franchisees should carefully review these requirements to understand their responsibilities upon termination of the franchise agreement.