What are the Learningrx franchisee's obligations regarding site selection (Item 9) and how does the franchisor's designation of the territory (Item 11) influence 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 |
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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 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.
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.
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are responsible for site selection, but Learningrx provides assistance and must approve the location. 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 Disclosure Document. Learningrx designates the territory in writing and must approve the franchisee's site selection if it meets Learningrx's standards. The site must be within the designated territory.
Learningrx offers limited advice about selecting and analyzing a site. 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 approves otherwise in writing before lease execution. Learningrx will assist in the location selection process by considering factors such as population density, income levels, general location guidelines, and proximity to other Learningrx Centers.
If Learningrx and the franchisee cannot agree on a site, the franchisee must select two alternate sites for Learningrx to evaluate. Learningrx must approve or disapprove a site within 30 days of receiving notice from the franchisee. If Learningrx does not approve the site, they may terminate the Franchise Agreement. The franchisee also bears the responsibility for negotiating the lease for the property. The location of the Learningrx center should be close to the center of the territory.