If a Learningrx franchisee has an attachment or lien on the Center, how long does the franchisee have to resolve it before termination?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
A permanent or temporary receiver or trustee for the Center or all or substantially all of Franchisee's property is appointed by any court, or any such appointment is consented to or not opposed through legal action by Franchisee, or Franchisee makes a general assignment for the benefit of Franchisee's creditors or Franchisee makes a written statement to the effect that Franchisee is unable to pay its debts as they become due, or a levy or execution is made on the license, or an attachment or lien remains on the Center for thirty (30) days unless the attachment or lien is being duly contested in good faith by Franchisee and Franchisor is advised in writing;
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee has 30 days to resolve an attachment or lien on their center to avoid potential termination of the franchise agreement. However, this is contingent on the franchisee duly contesting the attachment or lien in good faith and advising Learningrx of the situation in writing. If these conditions are met, the franchisee may be able to avoid termination even if the issue remains unresolved after 30 days.
This clause protects Learningrx from franchisees who are unable to manage their finances or are facing significant legal challenges that could impact the Learningrx brand. It also provides a reasonable timeframe for franchisees to address such issues, especially if they are actively disputing the attachment or lien through appropriate legal channels.
It is important for prospective Learningrx franchisees to understand this provision and have a plan in place for addressing any potential financial or legal issues that could lead to an attachment or lien on their center. Maintaining open communication with Learningrx and demonstrating a good-faith effort to resolve the issue are crucial for avoiding termination of the franchise agreement.