Does Learningrx grant an exclusive or non-exclusive license to operate a center?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
0,000)) in the Territory for any twelve (12) month period thereafter in the Territory. Franchisee's failure to maintain the Minimum Annual Revenue Quota may result in loss of exclusivity for
the territory or the reduction or elimination of the Franchisee's Territory, or the termination of this Agreement, in Franchisor's sole discretion.
- 4.5 Reservation of Rights. Franchisee acknowledges that the Franchise granted hereunder is non-exclusive and that Franchisor and its Affiliates retain the exclusive right, among others:
- (a) to own, use, operate and to license and Franchise others to use, the Marks and System for the operation of LearningRx Centers at any location other than in the Territory, regardless of proximity to the Territory;
- (b) to use and Franchise the use of trademarks or service marks other than the Marks, whether in alternative channels of distribution or at any location including the Territory, except for products provided "trainer to student," in association with operations that are similar to or different than the LearningRx Center;
- (c) to offer the services or products, or grant others the right to offer the services or products, whether using the Marks or other trademarks or service marks, except products provided "trainer to student", through alternative channels of distribution, including without limitation, retail locations and other channels of distribution (other than LearningRx Centers) such as stores, shops, kiosks, malls, airports, and college campuses, at special events and other channels of distribution such as television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet, whether inside or outside the Territory;
- (d) to any websites utilizing a domain name incorporating the word "LEARNING" or "RX" or similar derivatives thereof. Franchisor retains the sole right to market on the Internet and use the Marks on the Internet, including all use of websites, social networking sites, domain names, URL's, directory addresses, metatags, linking, advertising, and co-branding and other arrangements.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchise grants a non-exclusive right to operate a center. Specifically, Learningrx retains the right to own, operate, and franchise others outside the franchisee's territory, regardless of proximity. They can also use and franchise other trademarks or service marks, except for products provided directly from trainer to student, in any location, including within the franchisee's territory.
Learningrx also retains the right to offer services or products through alternative channels of distribution, such as retail locations, stores, kiosks, malls, airports, special events, television, mail order, catalogs, wholesale outlets, or over the Internet, both inside and outside the franchisee's territory. Additionally, Learningrx maintains sole control over Internet marketing and the use of trademarks online, requiring franchisees to obtain prior written approval for any independent online marketing efforts.
Furthermore, Learningrx reserves the right to acquire similar businesses, regardless of their location, including within the franchisee's territory. This means that even within a franchisee's designated area, Learningrx could potentially operate or acquire competing businesses.
For a satellite location, Learningrx explicitly states that franchisees will not receive an exclusive or protected territory. Learningrx retains the right to grant a territory to another franchisee, even if the franchisee has a satellite location. This non-exclusive arrangement gives Learningrx significant flexibility in expanding its brand and service offerings through various channels and locations, which may impact the market and competitive landscape for individual franchisees.