How many locations is a Learningrx franchisee permitted to operate from within their territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
You will operate from 1 location approved by us and must receive our permission before relocating.
You do not receive the right to acquire additional franchises within your area by this agreement alone. Each Franchise Agreement is a separate and distinct transaction between you and us. You are encouraged to purchase franchise rights to operate additional locations within or outside your local trade area by signing an Area Development Agreement.
However, upon our approval, we may grant you the right to enter into a Satellite Location Addendum to the Franchise Agreement. The Satellite Location Addendum can only be entered into after you have operated the Center granted to you under the Franchise Agreement for two years. The current specifications required for a Satellite Location are contained in our Operations Manual. The Satellite Location Addendum would give you a 1-year license to set up a training location at a site that is not occupied by another franchisee. We are under no obligation to renew a Satellite Location Addendum for any additional term after the initial 1-year period. Further, if a new franchisee signs a Franchise Agreement with a Territory that includes a Satellite Location, the owner of that Satellite Location must shut down the location by the time the new franchisee signs its Franchise Agreement, and transfer all of its customers to that new franchisee. Satellite Locations are not assignable under any circumstances without our written approval. (See Attachment II of the Franchise Agreement: Satellite Training Site Addendum.)
If you sign an Area Development Agreement to purchase Area Development Rights, you will acquire the temporary right to develop Centers in 1 or more non-exclusive Development Territories described in a Development Schedule, which you and we must agree upon. Site selection is your responsibility, but we will assist you in the location selection process by considering population density, income levels, general location guidelines, and the proximity of the proposed site to other LearningRx Centers, along with the then-current, or any other reasonable criteria. The Development Schedule will require you to open at least 1 new Center in each Development Territory every 12 months. Your failure to satisfy the terms of the Development Schedule may result in the termination of your Area Development Agreement, the reduction of your Area Development Rights, or the loss of 1 or more Development Territories, at our discretion. When and if the Development Schedule has been finally satisfied or expires by its terms, you will no longer have rights to your Development Territory, and each Center will be limited to its individual Territory.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee typically operates from one approved location within their designated territory. The FDD states, "You will operate from 1 location approved by us and must receive our permission before relocating." This means that franchisees are initially limited to a single center unless they receive specific authorization from Learningrx to relocate or expand. Relocation is subject to Learningrx's approval based on factors like population density and proximity to other Learningrx centers.
Learningrx offers avenues for franchisees to potentially operate additional locations. Franchisees can pursue an Area Development Agreement to gain the right to develop multiple centers within specified territories. Alternatively, after operating a Learningrx center for two years, a franchisee may apply for a Satellite Location Addendum, which grants a one-year license to establish a temporary training location. However, Learningrx is not obligated to renew this addendum, and the satellite location must close if a new franchisee enters the territory.
It is important to note that acquiring additional franchise rights requires separate agreements and is not guaranteed by the initial franchise agreement. The Area Development Agreement allows for developing centers in non-exclusive territories, with a development schedule requiring at least one new center opening every 12 months. Failure to meet this schedule can lead to termination of the agreement or loss of development rights. Therefore, while the standard franchise agreement limits operation to a single location, Learningrx provides options for expansion through additional agreements, each with its own set of requirements and conditions.