What are the Learningrx franchisee's obligations regarding site selection (Item 9) and how does the franchisor's experience and expertise (Item 2) play a role?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
deems necessary or advisable in furthering Franchisee's Business and the business of the System as a whole and in connection with protecting the Marks and goodwill of Franchisor. Provision of services by Franchisor, either initial or continuing, is independent from the payment the Initial Franchise Fee or the continuing royalty fees. Franchisor will provide the services listed below on a continuing basis
- 8.2 Site Selection. 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.
- 8.3 Center Relocation. If Franchisee requests to relocate its Center, this will be subject to our approval, which we have the right to grant or deny for any reason or no reason. Any relocation will be subject to the site selection and lease provisions contained in the Franchise Agreement and Operations Manual. Franchisee will not be requ
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are primarily responsible for site selection and lease negotiation. However, Learningrx offers limited advice and assistance in this process. Specifically, Learningrx will analyze potential locations based on factors like population density, traffic patterns, proximity to other Learningrx centers, and other reasonable criteria outlined in Section 10.2 of the franchise agreement. The franchisee must ensure the location is close to the center of their territory, as the location is a factor in the potential success of the business.
Learningrx retains the right to reject any proposed location, although such consent will not be unreasonably withheld. If the franchisee and Learningrx disagree on the initial site, the franchisee must propose two alternative sites for evaluation. Learningrx is obligated to provide an evaluation of each of these alternative sites. The franchisor must approve or disapprove a proposed site within 30 days of receiving written notice from the franchisee; failure to do so within this timeframe results in automatic disapproval.
While Learningrx offers assistance, it explicitly states that this assistance does not constitute a representation or warranty regarding the property or the lease. This means the franchisee bears the ultimate responsibility for ensuring the suitability of the site and the terms of the lease agreement. The franchisee also has the option to request a relocation of their center, which is subject to Learningrx's approval. The first relocation request within the initial or any successor term is free; subsequent relocation requests incur a fee of $250.00.
Item 9 of the Learningrx FDD lists site selection and acquisition/lease as a franchisee obligation, referencing Sections 8.02 and 10.2 of the Franchise Agreement and Item 11 of the Disclosure Document. Item 11 further clarifies that Learningrx will designate the franchisee's territory in writing and approve the physical location selected by the franchisee, provided it meets Learningrx's standards and specifications. The site for a Micro Center must be at least 800 square feet, and a Standard Center must be at least 1,000 square feet, unless otherwise approved in writing. 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.