What is the Learningrx franchisee's obligation regarding compliance with rulings?
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 Learningrx's 2025 Franchise Disclosure Document, franchisees must adhere to all applicable laws, ordinances, regulations, or rulings that affect their business operations and the care and safety of children. This includes compliance with educational and professional licensing requirements, as well as the prompt payment of all taxes and business expenses, unless legitimately disputed with adequate reserves. Franchisees must also comply with laws covering occupational hazards, accommodations for the disabled (including the Americans with Disabilities Act if applicable), health, workers' compensation insurance, and unemployment insurance.
If a Learningrx franchisee fails to obtain all required permits, licenses, and certifications, or lacks the necessary licensed personnel within six months of signing the Franchise Agreement, Learningrx has the right to terminate the agreement without notice or opportunity to correct the issue. Franchisees are responsible for modifying their center at their own expense to comply with any applicable laws or regulations. They are also prohibited from engaging in any activity that could result in public criticism of the Learningrx system.
Furthermore, Learningrx requires franchisees to submit a certified statement each year, listing and describing all performance-based lawsuits or potential claims threatened or actually filed against the franchisee, its owners, managers, employees, or agents in connection with the operation of the business. If no such lawsuits or claims exist, the franchisee must submit a certified statement to that effect. This ensures Learningrx is aware of any legal issues that could impact the brand or system.