What kind of statement must a Learningrx franchisee submit at the end of each year regarding lawsuits or claims?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
11. RECORDS AND REPORTS
- 11.1 Records. Franchisee must keep and transmit complete and accurate Business Records on a current basis relating to the Business in the form, time, and manner that Franchisor prescribes. Franchisee must provide Franchisor with all hard copies, and access to electronic reports, as reasonably prescribed. Franchisee must maintain an accounting system, which accurately reflects all operational aspects of the Center including uniform reports as may be required by Franchisor. Franchisee must submit to Franchisor current financial statements and other reports as Franchisor may reasonably request to evaluate or compile research data on any operational aspect of the Center. Franchisor reserves the right to require that Franchisee make available its sales records and files by way of an Internet connection. Business Records will specifically also include:
- (a) tax returns;
- (b) daily reports;
- (c) Your Tuition Solution weekly and monthly reports summarizing loans provided to your Center's clients;
- (d) statements of Gross Revenues and expenses, to be prepared each month for the preceding month;
- (e) profit and loss statements, to be prepared at least quarterly and by an independent Certified Public Accountant annually; and
- (f) balance sheets, to be prepared at least annually by an independent Certified Public Accountant.
Franchisee must keep accurate records relating to the franchised Business for a period of six (6) years after the termination or expiration of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
Based on the 2025 Learningrx Franchise Disclosure Document, there is no mention of a requirement for franchisees to submit a statement regarding lawsuits or claims at the end of each year. The document does outline the records and reports that a franchisee must keep and transmit to Learningrx, including financial statements and other operational data. However, it does not specify any annual statement related to legal matters.
Item 23 details the receipts and financial statements of Learningrx, along with independent auditor's reports. It also includes a section on required records and reports from the franchisee, such as tax returns, daily reports, and financial statements. These financial reports include monthly statements of gross revenues and expenses, quarterly and annual profit and loss statements prepared by an independent Certified Public Accountant, and annual balance sheets also prepared by an independent CPA.
Prospective Learningrx franchisees should confirm with the franchisor directly whether there are any requirements to report lawsuits, claims, or other legal matters, either annually or on a more frequent basis. This information is not explicitly detailed in the provided excerpts, so direct clarification from Learningrx is necessary to fully understand the franchisee's reporting obligations.