factual

For Learningrx, how long after the termination of a Spousal Affiliate's association with the Franchisee is the non-compete period?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 the 2025 Learningrx Franchise Disclosure Document, a Spousal Affiliate is subject to a non-compete covenant for two years following the termination of their association with or employment by the franchisee.

During this two-year period, the Spousal Affiliate is restricted from engaging in competitive business activities within specific geographic and digital boundaries. These boundaries include the franchisee's territory, adjacent counties, territories operated by Learningrx or its franchisees, and a fifty-mile radius from any Learningrx Training Center. The non-compete also extends to online activities and multi-area marketing channels used by Learningrx.

This non-compete agreement aims to protect Learningrx's goodwill, trade secrets, and the integrity of its system. It prevents Spousal Affiliates from using confidential information gained during their association with the franchisee to unfairly compete with Learningrx. Prospective franchisees should carefully consider these restrictions and ensure that their Spousal Affiliates understand and agree to abide by them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.