If a Learningrx franchisee is an individual, must immediate family members sign the Confidentiality and Covenant Not to Compete Agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
7.5 Confidentiality and Covenant Not to Compete Agreements.
- (a) If the Franchisee is 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: each Member, shareholder, officer, director and partner of the entity, each spouse of such Member, shareholder, officer, director and partner, every manager of the Franchisee or Area Developer, each Guarantor of the Franchisee, the spouse of each Guarantor, and each employee having access to the Franchisor's confidential information.
- (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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, if the franchisee is an individual, certain individuals must sign Learningrx's standard Confidentiality & Covenant Not to Compete Agreement before performing any work at the Business or otherwise having access to Learningrx's Confidential Information. 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 the Franchisor's confidential information.
This requirement ensures that Learningrx's confidential information and trade secrets are protected, as these individuals are likely to have access to sensitive business data and operational practices. By signing the agreement, they are legally bound to maintain confidentiality and refrain from engaging in competitive activities that could harm Learningrx.
The franchisee is responsible for delivering copies of all signed agreements to Learningrx within one week of their execution. This ensures that Learningrx has a record of all individuals who have agreed to the confidentiality and non-compete terms, allowing them to enforce these agreements if necessary. Attachment IX to the Franchise Agreement contains a copy of the standard Confidentiality & Covenant Not to Compete Agreement.