What happens to the Learningrx franchise agreement if construction or conversion does not begin within the specified timeframe?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1 Center Construction. Franchisee must construct or convert a building and equip the Center, at Franchisee's expense, in a good and workmanlike manner as reasonably specified by Franchisor. All construction or conversion work must be completed in accordance with the standards and specifications of Franchisor and must conform with all applicable zoning and other requirements of local authorities. Construction or conversion must begin by the earlier of one (1) month from the date of execution of the Center's lease, or six (6) months from the date of this Agreement. Franchisor will approve or disapprove the plans within thirty (30) days of submission.
- 10.2 Property. Franchisee may purchase or lease the required real property and improvements from any source upon terms approved by Franchisor in writing. Proposals for location of the Center must be submitted to Franchisor within six (6) months of the execution of this Agreement, or this Agreement will automatically terminate. Franchisee must deliver to Franchisor any traffic, competition, and demographic and similar location information relating to any proposed site, that Franchisor reasonably requests, for review at least twenty (20) days before any proposed lease signing date. Franchisee must deliver to Franchisor a copy of the proposed lease and an option to assume the lease upon termination of this Agreement signed by the lessor in favor of Franchisor in a form acceptable to Franchisor. If Franchisor
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the franchise agreement will automatically terminate if proposals for the Learningrx center's location are not submitted within six months of the agreement's execution.
Specifically, franchisees are required to start construction or conversion of their Learningrx center by the earlier of one month from the date of the center's lease execution or six months from the date of the franchise agreement. Franchisees are responsible for all construction and conversion expenses, ensuring the work adheres to Learningrx's standards and local zoning regulations. Learningrx must approve the construction plans within 30 days of submission.
Furthermore, franchisees must submit location proposals to Learningrx within six months of signing the franchise agreement. They also need to provide traffic, competition, demographic, and other location-related information for review at least 20 days before signing any lease. Additionally, a copy of the proposed lease and an option for Learningrx to assume the lease upon termination must be provided.