What are the Learningrx franchisee's obligations regarding site selection (Item 9) and how does the franchisor's approval process (Item 11) impact this?
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 |
-
- 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 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).
Franchisee is solely responsible for locating a site for the Business and negotiating a lease for the property.
Franchisor will analyze a location by examining population density, traffic patterns, proximity of the proposed location to any other LearningRx Centers, or any other reasonable criteria, as set forth in Section 10.2.
Franchisee agrees that the location of the Center is a factor in the potential for success of the Business and the location will be located close to the Center of the Territory.
Franchisor may reject any location in its discretion, but consent will not be unreasonably withheld.
If Franchisee and Franchisor cannot agree on the site selection, then Franchisee must select two (2) alternative sites.
Franchisor shall provide Franchisee with an evaluation of each site as described above.
Franchisor shall approve or disapprove Franchisee's proposed site within thirty (30) days of the date Franchisor receives written notice of the proposed site from Franchisee.
Any site not approved in writing by Franchisor within the thirty (30) day time period shall be deemed disapproved.
-
- If you are an Area Developer, after locating a site within the Development Territory, you shall submit to us information about the proposed location, including, without limitation, lease terms, land acquisition terms, demographic criteria and preliminary site plans showing building orientation, proposed unit location, parking layout, and certain other information, as we may require. 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, along with the then-current selection, or any other reasonable criteria.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are primarily responsible for site selection, but Learningrx provides assistance and has final approval. Item 9 outlines site selection and acquisition/lease as a franchisee obligation, referencing Sections 8.02 & 10.2 of the Franchise Agreement and Item 11 of the FDD. This means franchisees must find a location that meets Learningrx's standards. For a Micro Center, the site must be at least 800 square feet, and for a Standard Center, at least 1,000 square feet, unless Learningrx provides written approval otherwise. The location must be within the franchisee's designated territory, and the franchisee must maintain a physical location at all times.
Learningrx offers limited advice and assistance in site selection, considering factors such as population density, income levels, general location guidelines, and proximity to other Learningrx centers. If the franchisee and Learningrx cannot agree on a site, the franchisee must propose two alternative sites for evaluation. Learningrx has 30 days to approve or disapprove a proposed site after receiving written notice from the franchisee. Failure to obtain written approval within this timeframe is considered a disapproval.
Learningrx's approval process significantly impacts the franchisee's site selection. While the franchisee is responsible for finding the location and negotiating the lease, Learningrx has the right to reject any location, although consent will not be unreasonably withheld. If Learningrx disapproves of the site, they may terminate the Franchise Agreement. This highlights the importance of working closely with Learningrx during the site selection process to ensure the chosen location meets their criteria and avoids potential termination of the franchise agreement. For Area Developers, similar site selection responsibilities apply within their Development Territory, requiring them to submit detailed information about proposed locations for Learningrx's approval.