Can a Learningrx franchisee transfer their franchise to a sibling without paying the Transfer Fee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
goodwill or brand under any other agreement with Franchisor at the time Franchisee requests permission to transfer the Business or at the time of the transfer;
- (b) Franchisee has settled all outstanding accounts with Franchisor, and Franchisee, and every principal of Franchisee's entity, have executed a general release of Franchisor and all principals of Franchisor from all claims that may be brought by you or any principal;
- (c) the proposed transferee pays Franchisor a fee to transfer the Business ("Transfer Fee") in the amount of Ten Thousand and 00/100 Dollars ($10,000.00), unless the transferee is: (i) a corporation, partnership, or limited liability company of which Franchisee is the majority stockholder, or a child, parent, sibling or spouse of Franchisee, in which case no Transfer Fee will be
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee can transfer their Learningrx center to a sibling without incurring the standard Transfer Fee of $10,000. This waiver of the Transfer Fee is specifically applicable when the transfer is to a child, parent, sibling, or spouse of the franchisee. However, this transfer is subject to Learningrx's approval.
Even though the Transfer Fee is waived for transfers to immediate family members, the sibling transferee must still meet other requirements. These include settling all outstanding accounts with Learningrx and executing a separate franchise agreement using the then-current form. The sibling must also pay for, attend, and satisfactorily complete the training program for new franchisees, unless they are a current franchisee or administrative staff member in good standing who has already completed the training.
Furthermore, the sibling must execute a personal guarantee, jointly and severally guaranteeing the performance of the proposed transferee's obligations. This ensures that the new franchisee is fully committed to upholding the terms of the franchise agreement. These conditions ensure that any transferee, even a family member, is qualified and committed to maintaining the standards of the Learningrx franchise system.