What are the franchisee's obligations regarding pre-opening purchases/leases for Learningrx (Item 9) and how does Learningrx assist with site selection (Item 11)?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
out your obligations in these agreements and in other items of this disclosure document.**
| Obligation | Section in Franchise Agreement | Item in Disclosure Document | |---|---|---| | a. Site selection and acquisition/lease if any | Sections 8.02 & 10.2 | 11 | | b. Pre-opening purchases/leases | Sections 10.02 & 12.6 | 11 | | c. Site development and other pre-opening | Sections 10 & 12 | 11 | | requirements | | | | d. Initial and ongoing training | Sections 8.04 & 8.05 | 11 | | e. Opening | Section 12.05 | 11 | | f. Fees | Section 5 | 5, 6, 7 | | g. Compliance with standards and | Section 7.04, 12.02, 1203 | 11 | | policies/Operations Manual | | | | h. Trademarks and proprietary information | Section 6 & 7 | 13, 14 | | i. Restrictions on Products and services offered | Sections 8.03, 12.06 | 8, 16 | | j. Warranty and customer service requirements | None | Not applicable. | | k. Territorial development and sales quotas | Section 4 and Attachment I | 11, 12 | | l. Ongoing Product and service purchases | Section 12 | 8, 16 | | m. Maintenance, appearance & remodeling | Sections 10.01, 10.04 12.02, | Not applicable. | | requirements | 12.03 | | | n. Insurance | Section 12.08 | 8 | | o. Advertising | Section 9 | 11 | | p. Indemnification | Section 12.14 | Not applicable. |
| Obligation | Section in Franchise Agreement | Item in Disclosure Document |
|---|---|---|
| q. Owner’s participation/management staffing | Sections 12.04 | 15 |
| r. Records/reports | Section 7 | Not applicable |
| s. Inspection/audits | Section 11 | Not applicable |
| t. Transfer | Section 14 | 17 |
| u. Renewal | Section 3 | 17 |
| v. Post-termination obligations | Sections 13.03, 13.04 | 17 |
| w. Non-competition covenants | Sections 7.5, 15.01 | 17 |
| x. Guaranty and Assumption of Franchisee’s | Section 2.03 and Attachment V | 15 |
| Obligations | ||
| y. Other: Guaranty | Section 7.04 and Schedule B | 15 |
AREA DEVELOPER'S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.
| | Section in Area | Item in Disclosure | |---|---|---| | Obligation | | | | | Developer Agreement | Document | | | | | | a. Site selection and acquisition/lease if any | Section 5 | 11 | | b. Pre-opening purchases/leases | Not applicable | Not applicable | | c. Site development and other pre-opening requirements | Sections 4 & 5 | 11 | | d. Initial and ongoing training | Section 3.02 | 11 | | e. Opening | Section 4 | Not applicable | | f. Fees | Section 3 | 5, 6, 7 | | g. Compliance with standards and policies/Operations | Sections 6 & 13 | 11 | | Manual | | | | h. Trademarks and proprietary information | Not applicable | Not applicable | | i. Restrictions on Products and services offered | Not applicable | Not applicable | | j. Warranty and customer service requirements | Not applicable | Not applicable | | k. Territorial development and sales quotas | Sections 1 & 4 | 11, 12 | | l. Ongoing Product and service purchases | Not applicable | Not applicable | | m. Maintenance, appearance and remodeling | Not applicable | Not applicable | | requirements | | | | n. Insurance | Not applicable | Not applicable | | o. Advertising | Not applicable | Not applicable | | p. Indemnification | 7.04 & 12.02 | Not applicable |
| Section in Area | Item in Disclosure | |
|---|---|---|
| Obligation | ||
| Developer Agreement | Document | |
| q. Owner’s participation/management staffing | Not applicable | Not applicable |
| r. Records/reports | Section 4.03 | Not applicable |
| s. Inspection/audits | Not applicable | 11 |
| t. Transfer | Section 7 | 17 |
| u. Renewal | Section 2 | 17 |
| v. Post-termination obligations | Section 9.02 | 17 |
| w. Non-competition covenants | Section 9 | 17 |
| x. Dispute resolution | Section 10 | 17 |
| y. Other: Guaranty | Section 7.04 and | 15 |
ITEM 10 FINANCING
Neither LearningRx nor any agent or affiliate of ours offers direct or indirect financing. LearningRx does not guarantee your note, lease or obligation.
ITEM 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING
Except as listed below, LearningRx is not required to provide you with any assistance.
Pre-Opening Obligations
Before you begin your Business, we will:
-
- Designate your Territory in writing and approve, if it meets our standards and specifications for approval, the physical location selected solely by you to be used for the operation of the Center. (See Sections 4 and 10 of the Franchise Agreement).
-
- Provide digital access to our confidential Operations Manual, which contains specifications, standards, operating procedures and rules that must be followed. The Operations Manual is confidential and remains our property. We may modify the Operations Manual from time to time, but the modification will not alter your status and rights under the Franchise Agreement.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees have obligations regarding pre-opening purchases/leases, as detailed in Sections 10.02 & 12.6 of the Franchise Agreement, and further discussed in Item 11 of the disclosure document. Item 11 states that Learningrx does not deliver or install the equipment, signs, fixtures, opening inventory, or supplies. The franchisee is responsible for purchasing certain marketing materials, equipment, services, supplies, opening inventory and materials used to operate their franchise from Learningrx's approved or designated suppliers, the contact information for which are indicated in the Operations Manual.
Regarding site selection, Learningrx will designate the territory in writing and approve the physical location selected by the franchisee if it meets Learningrx's standards. Learningrx provides limited advice about selecting and analyzing a site for the center. The site for a Micro Center must be at least 800 square feet, and a Standard Center must be at least 1,000 square feet, unless otherwise approved by Learningrx in writing prior to lease execution, and be located inside of the territory.
Learningrx will assist in the location selection process by considering population density, income levels, general location guidelines, and the proximity of the proposed site to other Learningrx Centers or any other reasonable criteria. If Learningrx and the franchisee cannot agree on the site selection, the franchisee must select 2 alternate sites, and Learningrx will provide an evaluation of each location. Learningrx must approve or disapprove the site within 30 days after receiving notice of the location from the franchisee. However, Learningrx does not own the premises leased for franchised locations. If Learningrx does not approve the site, they may terminate the Franchise Agreement.
For Area Developers, after locating a site within the Development Territory, the franchisee must submit information about the proposed location, including lease terms, land acquisition terms, demographic criteria, and preliminary site plans. Learningrx will assist in the location selection process by considering population density, income levels, general location guidelines, and the proximity of the proposed site to other Learningrx Centers, along with the then-current selection, or any other reasonable criteria. Learningrx also provides limited advice about the negotiation of the lease or purchase of a location for the business, which will be leased or purchased by the franchisee from independent third parties.