Can a Learningrx franchisee sue the franchisor for harm caused by computer-related problems?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
You are solely responsible for protecting yourself from viruses, computer hackers, and other communications and computer-related problems, and you may not sue us for any harm caused by such computer-related problems. You must also take reasonable steps to verify that any person or entity upon whom you rely is reasonably protected. This may include establishing firewalls, access code protection, anti-virus systems, and use of backup systems.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 26–33)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are responsible for protecting themselves from computer-related issues like viruses and hackers. The FDD explicitly states that a franchisee cannot sue Learningrx for any harm caused by these types of computer problems. To protect themselves, Learningrx recommends that franchisees take reasonable steps, such as establishing firewalls, using access code protection, implementing anti-virus systems, and utilizing backup systems.
Learningrx requires franchisees to obtain Internet access that meets the standards listed in the Operations Manual. This access is needed so that Learningrx can remotely access the system and receive daily communication records from the franchisee's center. Learningrx will provide tutorials on how to operate the system. Franchisees are also required to purchase at least one computer system (Learningrx recommends two) that meets the specifications necessary to run the software for the center's operation, as detailed in the Operations Manual. The estimated cost for the computer system(s) ranges from $4,000.00 to $6,000.00, and they can be purchased from any computer reseller.
Learningrx also has the right to require franchisees to change their computer systems from time to time, though these changes will not exceed $10,000.00 for any given change or upgrade. While Learningrx recommends obtaining a hardware maintenance contract, it is not mandatory. This allocation of responsibility for computer-related issues is fairly common in franchising, as franchisors often set system standards but leave the management and security of technology to the franchisee.