factual

If a Learningrx franchisee is not an entity, who besides the franchisee must sign the Confidentiality and Covenant Not to Compete Agreement?

Learningrx Franchise · 2025 FDD

Answer 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 Learningrx's 2025 Franchise Disclosure Document, if the franchisee is not an entity, certain individuals associated with the franchisee must sign the Confidentiality and Covenant Not to Compete Agreement. These individuals include the spouse of the franchisee, every manager of the Learningrx franchise, 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.

For a prospective Learningrx franchisee, this means that if you operate your franchise as an individual, you must ensure that your spouse, managers, guarantors (and their spouses), and employees with access to confidential information all sign the agreement. Furthermore, Learningrx requires that a copy of all such signed agreements be delivered to Learningrx within 1 week of their execution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.