What are the Learningrx franchisee's obligations regarding site selection (Item 9) and how does the franchisor's brand recognition (Item 13) play a role?
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 |
| h. Trademarks and proprietary information | Section 6 & 7 | 13, 14 |
Franchisee is solely responsible for locating a site for the Business and negotiating a lease for the property.
Upon request, Franchisor will provide limited advice and assistance to Franchisee in selecting a site and analyzing a location and in negotiating a lease.
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.
However, Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease.
You must maintain a physical location for your Center at all times.
Franchisee may not independently market on the Internet, or use any domain name, social networking site, address, locator, link, metatag, or search technique, with words or symbols similar to the Marks or otherwise establish any presence on the Internet without Franchisor's prior written approval.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are primarily responsible for site selection, though Learningrx offers some assistance. Item 9 outlines franchisee obligations, referencing sections in the Franchise Agreement related to site selection. Specifically, franchisees must locate a site and negotiate the lease, but Learningrx will provide limited advice and assistance upon request.
Learningrx will analyze potential locations based on factors like population density, traffic patterns, and proximity to other Learningrx centers. The franchisee must ensure the location is near the center of their territory. Learningrx retains the right to reject a proposed location, although this consent will not be unreasonably withheld. If the franchisee and Learningrx disagree on the site, the franchisee must propose two alternative sites for evaluation. Learningrx must approve or disapprove a site within 30 days of receiving written notice; failure to do so within this timeframe constitutes disapproval.
While Learningrx offers assistance, it explicitly states that this assistance does not constitute a representation or warranty regarding the property or lease. The franchisee also bears the responsibility for maintaining a physical location for their center at all times. The FDD mentions trademarks and proprietary information in Item 9, indicating that franchisees must adhere to guidelines that protect Learningrx's brand and image in their chosen location. This includes compliance with standards and policies outlined in the Operations Manual, as well as restrictions on using the Learningrx trademarks and service marks on the internet without prior written approval from Learningrx.