For how long after someone leaves employment with Learningrx, its affiliates, or franchisees is a Spousal Affiliate prohibited from employing them?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. Employ, or seek to employ, any person who is at the time or was within the preceding 180 days employed by Franchisor, any of its affiliates or any of its franchisees, or otherwise directly or indirectly induce such person to leave that person's employment; or
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Spousal Affiliate is prohibited from employing any person who is or was employed by Learningrx, its affiliates, or its franchisees within the preceding 180 days. This restriction is put in place to protect the goodwill and unique qualities of the Learningrx system, as well as the confidentiality and value of its trade secrets. This agreement is part of the broader covenants not to compete that the Spousal Affiliate agrees to.
This restriction means that a Spousal Affiliate cannot hire someone who has recently worked for Learningrx or its related entities. The purpose is to prevent the potential transfer of confidential information or the diversion of business opportunities to a competitor. The term "Competitive Business" includes businesses offering learning enhancement, brain training, or math and reading training courses, programs, or products.
For a prospective Learningrx franchisee, this clause highlights the importance of ensuring that their Spousal Affiliate understands and complies with these restrictions. Failure to do so could result in legal repercussions and potential damage to the Learningrx business. It is also important for franchisees to be aware of this restriction when hiring employees, to avoid inadvertently violating the agreement.
This type of non-compete and non-solicitation clause is common in franchise agreements to protect the franchisor's and other franchisees' interests. Franchisees should carefully review all such clauses with legal counsel to fully understand their obligations and potential liabilities.