How many successive renewal terms can a Learningrx franchisee request?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Rights Upon Expiration.
At the end of the term of this Agreement, Franchisee may request a renewal term ("Renewal Term") for one (1) successive period of ten (10) years, provided Franchisor does not exercise its rights of refusal as set forth in Section 3.3 below.
- 3.3 Right of Refusal to Grant Successor Term.
Franchisor may refuse, in Franchisor's sole discretion, to grant Franchisee's request for a Renewal Term if Franchisee:
(a) fails to remedy, in the time frame set forth in this Agreement, any breach of this Agreement specified by Franchisor in a written notice;
(b) has committed two (2) or more material breaches of this Agreement in the preceding twelve (12) months prior to expiration;
(c) fails to give notice of Franchisee's intent to renew at least six (6) months, but no more than twelve (12) months, prior to the expiration of this Agreement.
Failure to give timely notice will be considered an election not to renew this Agreement; or
(d) is not current in payment obligations to Franchisor or its subsidiaries and affiliates and to trade creditors, landlords, or mortgage holders at the time Franchisee delivers its notice of renewal or on the date this Agreement is scheduled to expire unless Franchisee has a legitimate basis to dispute the claims of such persons and has made adequate reserves therefore.
3.4 Renewal Franchise Agreement.
Franchisee must execute Franchisor's then-current form of franchise agreement and ("Renewal Franchise Agreement") all other legal agreements for new franchisees.
The Renewal Franchise Agreement may vary in material aspects from this Agreement, including, but not limited to, higher royalty and advertising fees.
The Renewal Franchise Agreement shall contain a right to renew the Renewal Franchise Agreement for at least one (1) successive ten (10) year period.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee can request one renewal term of ten years at the end of the initial agreement term, provided Learningrx does not refuse the renewal. The initial agreement lasts for ten years from the date both parties execute it, unless terminated earlier according to the agreement.
Learningrx has the right to refuse a renewal if the franchisee fails to remedy breaches of the agreement, commits two or more material breaches within the 12 months before expiration, fails to provide timely notice of intent to renew (at least six months but no more than twelve months before expiration), or is not current on payment obligations to Learningrx, its subsidiaries/affiliates, trade creditors, landlords, or mortgage holders. However, a legitimate dispute with adequate reserves may be an exception.
If the renewal is granted, the franchisee must sign Learningrx's then-current franchise agreement, which may differ materially from the original, potentially including higher fees. However, this renewal agreement must contain a right to renew for at least one successive ten-year period. This ensures that a Learningrx franchisee, if eligible and approved, can operate under a franchise agreement for a minimum of 30 years, assuming all renewal options are exercised.