Does the Learningrx indemnification agreement extend beyond the termination or expiration of the Franchise Agreement?

According to the 2025 Learningrx Franchise Disclosure Document, the franchise agreement contains a covenant not to compete that extends beyond the termination of the franchise. Specifically, during the term of the agreement and for two years after termination, transfer, or expiration, the franchisee and their affiliates are restricted from engaging in competitive business activities. This includes having a controlling interest in a competitive business, performing services for one, or diverting business or employees from Learningrx.

This covenant applies throughout the United States during the agreement's term. Post-termination, it applies within the franchisee's territory, adjacent counties, and within a 50-mile radius of the territory or any Learningrx Training Center. It also extends to online activities and multi-area marketing channels used by Learningrx.

However, the enforceability of the covenant not to compete extending beyond the termination of the franchise may be limited under California law. Therefore, prospective franchisees should be aware of these post-term restrictions and consult with legal counsel to understand their implications and enforceability in their specific jurisdiction.