What is the Learningrx franchisee's obligation regarding compliance with licensing requirements?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 Compliance with Applicable Laws. Franchisee agrees to (i) comply with all applicable laws, ordinances and regulations or rulings, or licensing requirements, of every nature whatsoever which in any way regulate or affect the operation of its Business and to the care and safety of children, (ii) comply with all applicable educational and professional licensing requirements, (promptly all taxes and business expenses, unless Franchisee is legitimately disputing such matters and has adequately reserved therefor, and (iv) comply with all laws covering occupational hazards, accommodations for the disabled, including without limitation, the Americans with Disabilities Act, if applicable, health, workers' compensation insurance and unemployment insurance. If Franchisee does not obtain all required permits and licenses and other certifications necessary to operate the business and have all required professional and licensed personnel required by law or the Operations Manual to operate the Business, within six (6) months after Franchisee's execution of this Agreement, Franchisor may terminate this Agreement without providing the Franchisee notice or the opportunity to cure the default. Franchisee agrees, at its expense, to modify its Center, if necessary, to comply with any such applicable laws or regulations. Franchisee shall not engage in any activity or practice that results, or may reasonably be anticipated to result, in any public criticism of the System or any part thereof. At the end of each year of the term of this Agreement, Franchisee must submit to Franchisor a certified statement listing and describing all performance-based lawsuits or potential claims threatened or actually filed against Franchisee, its owners, managers, employees or agents in connection with the operation of the Business, or if no such lawsuits or claims are threatened or filed during that year, a certified statement to that effect.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, franchisees must adhere to all applicable laws, ordinances, regulations, rulings, and licensing requirements that govern the operation of their business, including those related to child care and safety. This also extends to compliance with all applicable educational and professional licensing requirements.
Specifically, the Learningrx franchisee is responsible for obtaining all necessary permits, licenses, and certifications required to operate the business and ensure that all personnel meet the professional and licensing standards mandated by law or the Operations Manual. Failure to secure these requirements within six months of signing the Franchise Agreement may result in termination of the agreement by Learningrx, without notice or an opportunity to rectify the situation.
Furthermore, the Learningrx franchisee is obligated to modify their center, at their own expense, to comply with any applicable laws or regulations. They must also refrain from any activity that could reasonably lead to public criticism of the Learningrx system. At the end of each year, franchisees must provide Learningrx with a certified statement detailing any performance-based lawsuits or potential claims filed against them, their owners, managers, employees, or agents in connection with the business, or a statement confirming that no such lawsuits or claims exist.