What kind of statement must a Learningrx franchisee submit to the franchisor at the end of each year?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
At the end of each year of the term of this Agreement, Franchisee must submit to Franchisor a certified statement listing and describing all performance-based lawsuits or potential claims threatened or actually filed against Franchisee, its owners, managers, employees or agents in connection with the operation of the Business, or if no such lawsuits or claims are threatened or filed during that year, a certified statement to that effect.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, at the end of each year of the franchise agreement, a Learningrx franchisee must submit a certified statement to Learningrx. This statement needs to list and describe all performance-based lawsuits or potential claims that were threatened or actually filed against the franchisee, its owners, managers, employees, or agents. These lawsuits or claims must be related to the operation of the Learningrx business.
However, if no such lawsuits or claims were threatened or filed during the year, the franchisee must submit a certified statement confirming that fact. This requirement ensures that Learningrx is informed about any legal issues or potential liabilities that could affect the franchise system.
This disclosure allows Learningrx to assess risks and potentially provide support or guidance to franchisees facing legal challenges. It also helps Learningrx maintain the integrity and reputation of the brand by being aware of any performance-related issues that could lead to legal action. Franchisees should maintain thorough records and consult with legal counsel to ensure accurate and complete reporting in these annual statements.