factual

Does a Learningrx franchisee have the right to unilaterally renew the Satellite Location Addendum?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor is under no obligation to renew this Addendum after the Initial Term.

Franchisee does not have any right to unilaterally renew this Addendum.

Franchisor may elect to grant Franchisee the right to extend this Addendum for additional three hundred, sixty-five (365) day periods (each a "Successor Term") after the expiration of the current term.

If Franchisee exercises its right to a Successor Term, it must pay Franchisor an additional Satellite Location Fee before the first day of that Successor Term.

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

What This Means (2025 FDD)

According to the 2025 Learningrx Franchise Disclosure Document, a franchisee does not have the right to unilaterally renew the Satellite Location Addendum. The franchisor, Learningrx, is under no obligation to renew the addendum after the initial term. However, Learningrx may choose to grant the franchisee the right to extend the addendum for additional 365-day periods, each referred to as a "Successor Term," after the current term expires.

If Learningrx grants the option for a Successor Term and the franchisee chooses to exercise this right, the franchisee must pay an additional Satellite Location Fee before the first day of the Successor Term. This fee is in addition to the initial Satellite Location fee of $5,000.00 that is paid upon signing the addendum if the Satellite Location is outside of the Territory, or $2,400.00 if the Satellite Location is within the Territory and the franchisee wishes to have the Satellite Location listed on the Learningrx website.

This means that the renewal of a Learningrx Satellite Location Addendum is not guaranteed and is at the discretion of the franchisor. A franchisee should be aware that the initial investment and ongoing operation of a satellite location may not extend beyond the initial term unless Learningrx grants a renewal option. This contrasts with many franchise agreements where franchisees have a right to renew, subject to certain conditions. A prospective franchisee should inquire about Learningrx's typical practices regarding satellite location addendum renewals and the criteria they use to make these decisions.

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.