If a Learningrx franchisee fails to designate an acceptable site, what is the consequence?
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 responsible for finding a site for their Learningrx business and negotiating the lease. Learningrx will provide limited advice and assistance upon request, including analyzing the location based on factors like population density, traffic patterns, and proximity to other Learningrx centers. The franchisor has the right to reject any proposed location, but this consent will not be unreasonably withheld.
If the Learningrx franchisee and franchisor cannot agree on the initial site selection, the franchisee must select two alternative sites for the franchisor to evaluate. Learningrx will then provide an evaluation of each of these alternative sites. The franchisor must approve or disapprove the franchisee's proposed site within 30 days of receiving written notice. If a site is not approved in writing within this 30-day period, it is deemed disapproved.
While the FDD excerpt details the site selection process and the franchisor's right to approve or disapprove locations, it does not explicitly state the consequences if a franchisee ultimately fails to designate an acceptable site. A prospective Learningrx franchisee should seek clarification from the franchisor regarding the specific ramifications of failing to secure an approved site, such as potential delays in opening, impacts on the franchise agreement, or any associated financial penalties.