If the Learningrx franchisee is not an entity, who besides the franchisee is required to sign the Learningrx Confidentiality & Covenant Not to Compete Agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) If the Franchisee is not an entity, then the following individuals must sign Franchisor's standard Confidentiality & Covenant Not to Compete Agreement (Attachment IX) before performing any work at the Business or otherwise having access to Franchisor's Confidential Information: the spouse of the Franchisee, every manager of the Franchisee, each Guarantor of the Franchisee, the spouse of each Guarantor, and each employee having access to the Franchisor's confidential information. A copy of all such signed agreements shall be delivered to Franchisor within 1 week of their execution.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, if the franchisee is not an entity, several individuals must sign the standard Confidentiality & Covenant Not to Compete Agreement. These individuals include the spouse of the franchisee, every manager of the franchisee, each Guarantor of the franchisee, the spouse of each Guarantor, and each employee having access to Learningrx's confidential information.
This requirement ensures that Learningrx's confidential information and trade secrets are protected, even when the franchise is operated by an individual rather than a corporate entity. By requiring these individuals to sign the agreement, Learningrx aims to prevent the unauthorized disclosure or use of its proprietary information, which could harm the franchise system.
The franchisee is responsible for delivering copies of all signed agreements to Learningrx within one week of their execution, emphasizing the franchisee's role in ensuring compliance with this requirement. This proactive measure helps Learningrx maintain control over its confidential information and enforce the non-compete provisions effectively.