Where must mediation, arbitration, and actions for injunctive relief take place for Learningrx disputes?

According to the 2025 Learningrx Franchise Disclosure Document, mediation, arbitration, and actions for injunctive relief must take place in the State of Colorado. This requirement extends to claims based on Learningrx's Marks or on covenants not to compete. However, this is subject to state law.

This means that if a Learningrx franchisee has a dispute with the company that escalates to mediation or arbitration, or if Learningrx seeks an injunction against a franchisee, the legal proceedings will be conducted in Colorado. This could involve travel and associated costs for franchisees located outside of Colorado. Franchisees should factor in these potential expenses when evaluating the franchise opportunity.

The FDD indicates that Colorado law applies to these dispute resolution processes, but this is subject to state law. This suggests that while Colorado law generally governs, there might be exceptions or limitations based on the franchisee's state of residence or operation. Prospective franchisees should seek legal counsel to understand how their local state laws might interact with this clause.

Choice of forum clauses are common in franchise agreements, as they provide the franchisor with a consistent legal environment. However, franchisees should carefully consider the implications of having to resolve disputes in a distant location, including potential costs and logistical challenges.