If the franchisee and Learningrx cannot agree on a site selection, what is the franchisee required to do?
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.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for finding a location for their Learningrx center and negotiating the lease. Learningrx will provide some advice and assistance in site selection, analyzing factors such as population density, traffic patterns, and proximity to other Learningrx centers. Learningrx has the right to reject a proposed location, but this consent cannot be unreasonably withheld.
If the franchisee and Learningrx cannot agree on the initial site, the franchisee must then select two alternative sites for Learningrx to evaluate. Learningrx will then provide an evaluation of each of these alternative sites. Within thirty days of receiving written notice of the proposed sites, Learningrx must approve or disapprove of the franchisee's proposed site. If Learningrx does not provide written approval within this 30-day period, the site is considered disapproved.
This process highlights the importance of thorough communication and collaboration between the franchisee and Learningrx during the site selection phase. While the franchisee bears the responsibility of finding potential locations, Learningrx retains the right to make the final decision. Franchisees should carefully consider Learningrx's criteria and recommendations to increase the likelihood of site approval and avoid delays in opening their center.