If a Learningrx franchisee is granted the right to continue training students after termination, when must the franchisee cease using the Franchisor's Program for a client?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event Franchisor agrees that Franchisee may continue to train students using Franchisor's Product after the Franchise Agreement is terminated, Franchisee may do so only until the client's prepaid or monthly payment for current program is complete. Notwithstanding the foregoing, once a client's then-current prepaid monthly program concludes, Franchisee will cease using Franchisor's Program for that client.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a franchisee who is permitted to continue training students after the termination of their Franchise Agreement can only do so until the client's current prepaid or monthly program is complete. After the client's current program concludes, the franchisee must stop using Learningrx's training program for that client.
This means that even after a franchise agreement ends, Learningrx may allow a franchisee to continue serving existing clients to ensure a smooth transition and avoid disruption in the client's training. However, this permission is limited to the duration of the client's existing, paid-for program.
This policy protects Learningrx's intellectual property and ensures that terminated franchisees do not continue to benefit from the Learningrx system indefinitely. It also provides a clear endpoint for the franchisee's use of the Learningrx program, preventing potential conflicts or confusion about the franchisee's ongoing relationship with the brand. If a franchisee wishes to continue offering similar services after this point, they would need to do so under a different brand and without using Learningrx's proprietary materials and methods.