What are the franchisee's obligations regarding pre-opening purchases/leases for Learningrx (Item 9) and how do these relate to the franchisor's brand standards (Item 8)?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 9: FRANCHISEE'S OBLIGATIONS]
| 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 | ||
| i. Restrictions on Products and services offered | Sections 8.03, 12.06 | 8, 16 |
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING]
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. 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).
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Item 9 outlines a franchisee's obligations, including those related to pre-opening purchases and leases, and compliance with brand standards. Specifically, franchisees have obligations regarding pre-opening purchases/leases as detailed in Sections 10.02 & 12.6 of the Franchise Agreement, which are further discussed in Item 11 of the Disclosure Document. Franchisees must also comply with Learningrx's standards and policies, as well as the Operations Manual, as specified in Sections 7.04, 12.02, and 1203 of the Franchise Agreement, also referenced in Item 11.
Item 11 details Learningrx's pre-opening obligations, stating that Learningrx will designate the territory in writing and approve the physical location selected by the franchisee, provided it meets Learningrx's standards and specifications. Learningrx also provides digital access to its confidential Operations Manual, which contains the specifications, standards, operating procedures, and rules that franchisees must follow. The Operations Manual is subject to modifications, but these modifications will not alter the franchisee's status and rights under the Franchise Agreement. Learningrx offers limited advice on site selection, specifying that a Micro Center must be at least 800 square feet and a Standard Center at least 1,000 square feet, unless otherwise approved in writing. The site must be within the designated territory, and the franchisee must maintain a physical location at all times.
Site selection is ultimately the franchisee's responsibility, but Learningrx will assist by considering factors such as population density, income levels, general location guidelines, and proximity to other Learningrx Centers. If Learningrx does not approve the initial site, the franchisee must select two alternate sites for evaluation. Learningrx has 30 days to approve or disapprove a site after receiving notice from the franchisee. If Learningrx does not approve the site, it may terminate the Franchise Agreement. This process ensures that the franchisee's pre-opening activities, including site selection and build-out, align with Learningrx's brand standards and operational requirements, as detailed in the Operations Manual and Franchise Agreement.