What happens if the Learningrx franchisee affiliate breaches the agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee and Franchisee Affiliate agree that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.
Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, Franchisor shall be entitled to enforce the provisions of this Agreement and shall be entitled, in addition to any other remedies that are made available to it at law or in equity, including the right to terminate the Franchise Agreement, to a temporary and/or permanent injunction and/or a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security. Franchisee and Franchisee Affiliate agree that Franchisee's and/or Franchisee Affiliate's sole remedy in the event of the entry of such injunctive relief shall be dissolution of such injunctive relief, if warranted, upon hearing duly had; provided, however, that all claims for damages by reason of the wrongful issuance of any such injunction are hereby expressly waived by Franchisee and by Franchisee Affiliate.
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- Franchisee Affiliate agrees to pay all expenses (including court costs and reasonable attorneys' fees) incurred by Franchisor and Franchisee in enforcing this Agreement.
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- Any failure by Franchisor to object to or take action with respect to any breach of this Agreement by Franchisee Affiliate shall not operate or be construed as a waiver of or consent to that breach or any subsequent breach by Franchisee Affiliate.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, if a franchisee affiliate breaches the agreement, Learningrx would be irreparably injured and lack an adequate remedy at law. In such cases, Learningrx has the right to enforce the agreement and seek remedies, including terminating the Franchise Agreement, and obtaining temporary or permanent injunctions, or a decree for specific performance, without needing to demonstrate actual harm or provide a bond or security. The franchisee affiliate's sole remedy against such injunctive relief is to seek its dissolution if warranted upon a hearing, while waiving all claims for damages resulting from the injunction's wrongful issuance.
Furthermore, the Learningrx franchisee affiliate is responsible for covering all expenses, including court costs and reasonable attorney's fees, incurred by Learningrx and the franchisee in enforcing the agreement. The failure of Learningrx to take action against any breach by the franchisee affiliate does not constitute a waiver of that breach or any subsequent breaches.
These stipulations highlight the importance of the franchisee affiliate's compliance with the agreement, as breaches can lead to significant legal and financial repercussions. Prospective franchisees should carefully review these terms and ensure that their affiliates understand their obligations and potential liabilities under the agreement. This is fairly standard in franchising, as franchisors need to protect their brand and system standards.