What are the franchisee's obligations regarding pre-opening purchases/leases for Learningrx (Item 9) and how do these relate to the franchisor's site selection criteria (Item 11)?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD 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 |
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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. We will give you an evaluation of each location. We must approve or disapprove your site within 30 days after we receive notice of the location from you. We do not own the premises leased for franchised locations. If we do not approve your site, we may terminate the Franchise Agreement. (See Section 8.02 of the Franchise Agreement).
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- You are responsible for purchasing certain marketing materials, equipment, services, supplies, opening inventory and materials used to operate your franchise from our approved or designated suppliers, the contact information for which are indicated in the Operations Manual. We do not deliver or install the equipment, signs, fixtures, opening inventory, or supplies. (See Section 12.7 of the Franchise Agreement).
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including pre-opening purchases/leases, which are further detailed in Item 11. Specifically, the franchisee is responsible for pre-opening purchases and leases, as indicated in Sections 10.02 & 12.6 of the Franchise Agreement, and these obligations are related to the information provided in Item 11 of the disclosure document.
Item 11 states that Learningrx will provide limited advice about selecting and analyzing a site for the center. The franchisee is solely responsible for site selection. However, Learningrx will assist in the location selection process by considering factors such as population density, income levels, general location guidelines, and the proximity of the proposed site to other Learningrx centers, or any other reasonable criteria. For a Micro Center, the site must be at least 800 square feet, and for a Standard Center, it must be at least 1,000 square feet, unless Learningrx approves otherwise in writing before the lease execution.
The franchisee is also responsible for purchasing certain marketing materials, equipment, services, supplies, opening inventory, and materials used to operate the franchise from Learningrx's approved or designated suppliers. Learningrx does not deliver or install the equipment, signs, fixtures, opening inventory, or supplies. If Learningrx and the franchisee cannot agree on the site selection, the franchisee must select two alternate sites, which Learningrx will evaluate. Learningrx must approve or disapprove the site within 30 days after receiving notice of the location from the franchisee. If Learningrx does not approve the site, they may terminate the Franchise Agreement.