Does Learningrx Franchisor have the right to receive an assignment of the leasehold interest from a Learningrx franchisee upon termination or expiration of the lease term?

According to Learningrx's 2025 Franchise Disclosure Document, Learningrx retains the right to receive an assignment of the leasehold interest from a franchisee upon the termination or expiration of the franchise term. Specifically, if a Learningrx franchisee leases their premises, the lease agreement must include a provision that allows Learningrx to receive an assignment of the leasehold interest. This condition applies upon the termination or expiration of the initial term, any renewal term, or any termination of the franchisee.

This provision ensures that Learningrx has the option to maintain control over the location of a franchise even after the franchisee's departure. Learningrx also has the right to reassign the lease without incurring liability or requiring further approval from the landlord, and without additional charges.

For a prospective Learningrx franchisee, this means that upon termination or expiration of the franchise agreement, Learningrx has the right to take over the lease of the premises. This could impact the franchisee's ability to continue operating a similar business at the same location after the franchise agreement ends. It is important for franchisees to understand this clause and its implications for their future business plans.

During the lease negotiation phase, Learningrx may assist the franchisee and may charge a lease negotiation fee for this assistance. The franchisee is responsible for finding a suitable site for their Learningrx center and negotiating the lease, but Learningrx has final approval rights over the location. This highlights the importance of carefully reviewing the lease agreement and understanding the conditions under which Learningrx can assume the lease.