Can Learningrx grant a territory to another franchisee that includes the Satellite Location's site?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
tellite Location Site. The site ("Site") of Franchisee's Satellite Location may be within the Territory granted to Franchisee under the Franchise Agreement, or it may be outside of the Territory granted to Franchisee under the Franchise Agreement, provided that site is not within an existing franchisee's territory granted pursuant to a valid franchise agreement. Franchisee acknowledges and agreements that Franchisee will not receive an exclusive or protected territory for its Satellite Location. Franchisor reserves the right to grant a territory to another franchisee which includes the Site at any time.
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- Retention of Rights. Franchisor, on behalf of it and its Affiliates, reserves all rights not specifically granted to Franchisee pursuant to this Addendum, all without compensation to Franchisee, including but not limited to the following: except as provided for in the Franchise Agreement between Franchisor and Franchisee, Franchisor and its Affiliates may own or operate, or license or franchise others to own or operate a LearningRx Training Center in any location, even if that location creates a territory which encompasses Franchisee's Site.
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- Gross Revenue.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx retains the right to grant a territory to another franchisee that includes a franchisee's satellite location site. The franchisee acknowledges that they will not receive an exclusive or protected territory for its satellite location. This means that even if a franchisee has a satellite location, Learningrx can still grant another franchisee a territory that overlaps with the satellite location's site.
Learningrx also reserves all rights not specifically granted to the franchisee, including the right to operate or franchise others to operate a Learningrx Training Center in any location, even if that location encompasses the franchisee's site. This further emphasizes that the franchisee's rights to the satellite location are non-exclusive and subject to Learningrx's discretion.
In the event that Learningrx licenses the right to own and operate a Learningrx Center to another franchisee and grants that franchisee a territory that includes the existing franchisee's satellite location site, the franchisee must shut down its satellite location by the time the new franchisee opens their Learningrx Training Center. Additionally, the franchisee must transfer all of its customers to the new franchisee. The franchisee will not receive any compensation or reimbursement of the Satellite Location Fee in this event.