For how long after the termination of a Franchisee Affiliate's association with a Learningrx franchisee does the Covenant Not to Compete apply?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This Covenant Not to Compete shall apply:
- a. during the term of Franchisee Affiliate's relationship, association with or employment by Franchisee anywhere within the United States; and,
- b. for the two years following the termination of Franchisee Affiliate's association with or employment by Franchisee:
- i. within Franchisee's Territory or any area serviced by Franchisee;
- ii. within counties adjacent to Franchisee's Territory or within a Territory then operated by or under development by Franchisor or another franchisee of Franchisor;
- iii. within a fifty mile radius from the boundary of Franchisees Territory or from any other franchised or company-owned LearningRx Training Center, or
- iv. on the Internet or 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 Learningrx's 2025 Franchise Disclosure Document, a Covenant Not to Compete applies to a Franchisee Affiliate for two years following the termination of the Franchisee Affiliate's association with or employment by the Learningrx franchisee. This restriction is designed to protect Learningrx's interests by preventing individuals with knowledge of their business practices from immediately joining or starting a competing business.
The Covenant Not to Compete applies within the franchisee's territory or any area serviced by the franchisee, counties adjacent to the franchisee's territory, or within a fifty-mile radius from the boundary of the franchisee's territory or any other franchised or company-owned Learningrx Training Center. It also applies on the Internet or on any other Multi-Area Marketing channels used by Learningrx. This broad geographic and virtual scope ensures that the non-compete agreement is comprehensive.
This non-compete agreement means that a Franchisee Affiliate leaving a Learningrx franchise must wait two years before engaging in a competitive business within the specified areas. This could limit immediate employment opportunities for the affiliate and may require them to seek employment in a different industry or location during the restricted period. Franchisees should ensure their affiliates understand these restrictions to avoid potential legal issues.