If a Learningrx franchise is terminated, does Learningrx have the option to purchase the franchisee's business?

According to the 2025 Learningrx Franchise Disclosure Document, Learningrx has an option to purchase a franchisee's business if the franchise is terminated. Specifically, Learningrx may purchase the franchisee's inventory and equipment at fair market value if the franchise is terminated for any reason. This is detailed in Section 14.07 and Attachment XI of the Franchise Agreement.

This provision means that if a Learningrx franchise is terminated, Learningrx has the right, but not the obligation, to buy the franchisee's business assets. The purchase is limited to inventory and equipment, and the price must be the fair market value. This protects Learningrx by allowing them to maintain operations in a territory if desired, and it provides a potential exit strategy for the franchisee, although the franchisee may prefer to sell the business to a third party.

It is important to note that this option applies to the standard Learningrx franchise agreement. The Area Developer Agreement, in contrast, does not include a similar option for Learningrx to purchase the Area Developer's business upon termination. Prospective franchisees should carefully review Section 14.07 and Attachment XI of the Franchise Agreement to fully understand the terms and conditions of this purchase option, including how "fair market value" is determined and what recourse the franchisee has if they disagree with Learningrx's valuation.