What are the franchisee's obligations regarding pre-opening purchases/leases for Learningrx (Item 9) and how do these relate to the franchisor's training program (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:
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- 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).
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- 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. We have included a copy of the Table of Contents of our Operations Manual as Exhibit F to this Franchise Disclosure Document. Given that the Operations Manual is completely electronic, it does not contain a set number of pages, however if it were to be printed, we estimate the total number of pages to be approximately 700. (See Section 7.04 of the Franchise Agreement).
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- Provide limited advice about selecting and analyzing a site for the Center. Your site for a Micro Center must be at least 800 square feet and your site for a Standard Center must be at least 1,000 square feet, unless otherwise approved by us in writing prior to lease execution, and be located inside of your Territory. You must maintain a physical location for your Center at all times. Site selection is your responsibility, but we will assist you 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 we cannot agree on the site selection, then you must select 2 alternate sites.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees have obligations regarding pre-opening purchases and leases, as outlined in Item 9. Specifically, the table in Item 9 indicates that 'Pre-opening purchases/leases' are detailed in Sections 10.02 & 12.6 of the Franchise Agreement and are further discussed in Item 11 of the Disclosure Document. Item 11 generally covers the franchisor's assistance, advertising, computer systems, and training provided to the franchisee. This suggests that the franchisor offers guidance or requirements related to these pre-opening aspects.
Item 11 details Learningrx's pre-opening obligations, stating that Learningrx will provide limited advice about selecting and analyzing a site for the Center. It also specifies the minimum square footage requirements for Micro Centers (at least 800 square feet) and Standard Centers (at least 1,000 square feet), unless otherwise approved in writing. The franchisee is responsible for site selection, but Learningrx will assist by considering factors like population density, income levels, and proximity to other Learningrx Centers. Learningrx must approve or disapprove the site within 30 days of receiving notice from the franchisee, and failure to approve may lead to termination of the Franchise Agreement.
Regarding training, Item 11 states that the franchisee and their designated Manager must attend and complete training to Learningrx's satisfaction before opening. This training must be completed within 10 to 12 weeks of signing the Franchise Agreement, and successful completion is mandatory for approval to open. The cost of this training is covered by the Initial Training and Materials Fee for up to four persons, but the franchisee is responsible for travel and living expenses. The training is conducted by experienced trainers and includes live instructions, handouts, and electronic access to the Operations Manual. All training, except on-the-job training, is held at Learningrx's corporate headquarters in Colorado Springs, Colorado, or another designated location, and may be conducted virtually at Learningrx's discretion. The computer systems necessary for operation are estimated to cost between $4,000.00 and $6,000.00.