For how long after termination is a Learningrx franchisee affiliate restricted from competing?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
15.1 Covenants Not to Compete. During the term of this Agreement and for two (2) years after termination, transfer, or expiration of this Agreement for any reason, Franchisee agrees that neither Franchisee, nor any manager of Franchisee, any person associated with Franchisee, including officers, directors, shareholders, partners, members, trustees, employees or agents, and any members of Franchisee's immediate families (collectively "Franchisee Affiliates"), will (i) have any direct or indirect controlling interest as a legal or beneficial owner in a Competitive Business (as hereinafter defined); (ii) perform services as a director, partner, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business; or (iii) divert or attempt to divert any business related to, or any customer or account of the LearningRx Training Center, Franchisee's Business, Franchisor's business, the business of any affiliate of Franchisor or any other franchisee licensed by Franchisor, by direct inducement or otherwise, or divert or attempt to divert the employment of any employee of Franchisor or another franchisee licensed by Franchisor, to any Competitive Business by any direct inducement or otherwise. During the term of this Agreement, this Covenant Not to Compete applies anywhere in the United States. For two (2) years after the termination, transfer, or expiration of this Agreement, for any reason, this Covenant Not to Compete applies: (a) within Franchisee's Territory; (b) within counties adjacent to Franchisee's Territory or within a Territory then operated by or under development by Franchisor or another franchisee of Franchisor; (c) within a fifty mile radius from the boundary of Franchisees Territory or from any other franchised or company-owned LearningRx Training Center, (d) on the Internet or (e) on any other Multi-Area Marketing channels used by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a franchisee affiliate is restricted from competing for two years after the termination, transfer, or expiration of the Franchise Agreement. This restriction applies to the franchisee, their managers, individuals associated with the franchisee (including officers, directors, shareholders, partners, members, trustees, employees, and agents), and immediate family members.
The non-compete clause prevents franchisee affiliates from having a direct or indirect controlling interest in a competitive business, performing services for a competitive business, or diverting business or employees from Learningrx or its franchisees to a competitive business. During the term of the agreement, this restriction applies throughout the United States.
After termination, the non-compete applies within the franchisee's territory, in adjacent counties, within a 50-mile radius of the territory or any other Learningrx center, and on the Internet or other multi-area marketing channels used by Learningrx. This means that after leaving the Learningrx system, a franchisee and their affiliates face significant limitations on operating or working for a competing business in a similar geographic area or through online channels.