What happens to any security interest arising out of the transaction if a Learningrx franchisee cancels?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee acknowledges as between the Franchisor and the Franchisee, the Franchisor has the sole rights to, and interest in, all numbers, addresses, domain names, locators, directories and listings used by Franchisee to promote the System.
The Franchisee hereby irrevocably appoints the Franchisor, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest, to execute such directions and authorizations as may be necessary or prudent to accomplish the foregoing.
Such appointment is evidenced by Attachment IV;
- (d) cease doing business under any of the Marks, cancel any assumed name registration that includes any of the Marks, assign all domain names and Internet directory listings that contain the Marks to Franchisor, and refrain from identifying itself as a LearningRx franchisee;
(e) allow Franchisor or representatives access to the Business and the computer systems to verify and secure Franchisee's compliance with the obligations under this Agreement;
(f) allow Franchisor to make a final inspection and audit of Franchisee's computer system, books, records and accounts; and
(g) abide by the terms of the required noncompetition covenant.
13.3 Failure to Cease or Remove Identification.
If, within thirty (30) days after termination of this Agreement by Franchisor, Franchisee fails to remove all displays of the Marks from the Center which are identified or associated with the System, Franchisor may enter the Center to effect removal.
In this event, Franchisor will not be charged with trespass nor be accountable or required to pay for any displays or materials.
If, within thirty (30) days after termination Franchisee has not taken all steps necessary to amend or terminate any registration or filing of any fictitious name or any other registration or filing containing the Marks, Franchisee hereby irrevocably appoints Franchisor as Franchisee's true and lawful attorney for Franchisee, for the purpose of amending or terminating all registrations and filings, this appointment being coupled with an interest to enable Franchisor to protect the System.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Learningrx retains sole rights to all numbers, addresses, domain names, locators, directories, and listings used by the franchisee to promote the Learningrx system. The franchisee acknowledges Learningrx's rights and interests in these items.
Upon termination of the franchise agreement, the franchisee must cease using Learningrx's marks, cancel any assumed name registrations that include Learningrx's marks, assign all domain names and internet directory listings containing the marks to Learningrx, and stop identifying as a Learningrx franchisee. The franchisee also agrees to allow Learningrx or its representatives access to the business and computer systems to verify compliance with these obligations and to conduct a final inspection and audit.
If the franchisee fails to remove all displays of Learningrx's marks from the center within 30 days after termination, Learningrx has the right to enter the center and remove them without being charged with trespass or being required to pay for any displays or materials. Additionally, if the franchisee does not amend or terminate any registrations or filings containing Learningrx's marks within 30 days after termination, Learningrx is irrevocably appointed as the franchisee's attorney to amend or terminate these registrations and filings to protect the Learningrx system.