What happens if a LearningRx franchisee voluntarily abandons or ceases operation of the business for more than five consecutive business days?

According to the 2025 Learningrx Franchise Disclosure Document, if a franchisee voluntarily abandons or ceases operation of the business for more than five consecutive business days, it constitutes a default under the franchise agreement. This abandonment triggers immediate termination of the agreement without notice from Learningrx.

Upon termination, the franchisee must promptly pay all outstanding amounts owed to Learningrx. The franchisee is also required to return all copies of the Operations Manual, customer lists, records, files, instructions, brochures, advertising materials, testing materials, agreements, confidential information, and any other materials provided by Learningrx. Additionally, all items containing Learningrx's trademarks, copyrights, and proprietary items must be returned at the franchisee's sole cost and expense, including shipping. The franchisee must also cancel or assign all registrations relating to the use of any of the marks within five business days, as directed by Learningrx.

Furthermore, the franchisee must notify all relevant entities, including telephone, internet, email, electronic network, directory, and listing services, about the termination of their right to use any numbers, addresses, domain names, locators, directories, and listings associated with Learningrx's marks. They must authorize the transfer of these assets to Learningrx or a new franchisee as directed by Learningrx. The franchisee must also cease doing business under any of Learningrx's marks, cancel any assumed name registrations that include the marks, assign all domain names and internet directory listings containing the marks to Learningrx, and refrain from identifying themselves as a Learningrx franchisee. Learningrx is also allowed access to the business and computer systems to verify and secure compliance with the obligations under the agreement, and to conduct a final inspection and audit of the franchisee's computer system, books, records, and accounts. The franchisee must also abide by the terms of the required non-competition covenant.

If the franchisee fails to remove all displays of the marks from the center within thirty days after termination, Learningrx has the right to enter the center to effect removal without being charged with trespass or being accountable for any displays or materials. Additionally, if the franchisee does not take the necessary steps to amend or terminate any registration or filing of any fictitious name or other registration containing the marks, Learningrx is irrevocably appointed as the franchisee's attorney to amend or terminate all registrations and filings to protect the Learningrx system.