What happens to the Learningrx Area Developer Agreement upon termination or expiration of its term?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of the term of this Agreement, this Agreement shall be of no further effect, and Franchisor shall have the right to itself open, or license others to open, Centers within the Development Territory. For purposes of this Section 6, any franchise agreement issued by Franchisor to Area Developer or its affiliates, or any Entity or joint venture, or their affiliates, in which Area Developer or any stockholder, partner or joint venturer of Area Developer, has any direct or indirect ownership or participation interest, shall be deemed a franchise agreement issued to Area Developer.
7. ASSIGNMENT
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, upon termination or expiration of the Area Developer Agreement, the agreement is of no further effect. Learningrx retains the right to open Learningrx centers itself or license others to do so within the Development Territory that was previously assigned to the Area Developer.
Additionally, the Area Developer is subject to a covenant not to compete. This covenant restricts the Area Developer from engaging in any business that is the same as or substantially similar to Learningrx within a 50-mile radius of the Development Territory or any other Learningrx center. This restriction lasts for two years following the termination or expiration of the agreement.
During the term of the Area Developer Agreement and for two years after termination, transfer, or expiration, the Area Developer is prohibited from having any direct or indirect controlling interest in a Competitive Business, performing services for a Competitive Business, or diverting business or employees from Learningrx. This non-compete applies anywhere in the United States during the agreement and extends to the Area Developer's Territory, adjacent counties, within a fifty-mile radius, on the Internet, and on any other Multi-Area Marketing channels used by Learningrx for two years after the agreement ends.