What happens to the Learningrx lease if the franchise agreement is terminated?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is solely responsible for locating a site for the Business and negotiating a lease for the property.
Upon request, Franchisor will provide limited advice and assistance to Franchisee in selecting a site and analyzing a location and in negotiating a lease.
Franchisor will analyze a location by examining population density, traffic patterns, proximity of the proposed location to any other LearningRx Centers, or any other reasonable criteria, as set forth in Section 10.2.
Franchisee agrees that the location of the Center is a factor in the potential for success of the Business and the location will be located close to the Center of the Territory.
Franchisor may reject any location in its discretion, but consent will not be unreasonably withheld.
If Franchisee and Franchisor cannot agree on the site selection, then Franchisee must select two (2) alternative sites.
Franchisor shall provide Franchisee with an evaluation of each site as described above.
Franchisor shall approve or disapprove Franchisee's proposed site within thirty (30) days of the date Franchisor receives written notice of the proposed site from Franchisee.
Any site not approved in writing by Franchisor within the thirty (30) day time period shall be deemed disapproved.
However, Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
Based on the 2025 Learningrx Franchise Disclosure Document, the franchisee is solely responsible for negotiating the lease for the property. Learningrx offers limited advice and assistance in site selection and lease negotiation but does not provide any guarantees regarding the property or lease terms. The FDD does not explicitly state what happens to the lease upon termination of the franchise agreement.
Typically, in franchising, the lease agreement is between the franchisee and the landlord, independent of the franchise agreement. Therefore, upon termination, the franchisee remains responsible for the lease unless otherwise negotiated with the landlord. The franchisor's approval of the site does not make them a party to the lease or responsible for it.
Since the Learningrx FDD does not specify the procedure regarding the lease after termination, a prospective franchisee should clarify with Learningrx what their obligations are regarding the lease if the franchise agreement is terminated. Specifically, franchisees should ask Learningrx about any requirements to assign the lease to Learningrx or another franchisee, or if there are any financial responsibilities Learningrx assumes related to the lease upon termination.