What is the Learningrx franchisee's obligation regarding compliance with statutes?
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 relevant laws, ordinances, regulations, and licensing requirements that govern their business operations and the care and safety of children. This encompasses compliance with educational and professional licensing standards, as well as the prompt payment of all taxes and business expenses, unless these are legitimately disputed with adequate reserves.
Learningrx franchisees are also obligated to follow laws pertaining to occupational hazards, accommodations for individuals with disabilities (including the Americans with Disabilities Act, if applicable), health, workers' compensation insurance, and unemployment insurance. Franchisees bear the expense of modifying their centers to comply with any such applicable laws or regulations.
Furthermore, Learningrx requires its franchisees to refrain from any activity that could result in 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 operation of the business, or a statement confirming that no such lawsuits or claims have been threatened or filed.