What is the minimum amount of Workers' Compensation insurance required for Learningrx franchisees?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
based on their use of designated or approved suppliers.
For all LearningRx Centers, you will maintain and purchase insurance in the following amounts and categories: Property insurance adequate to replace the contents of the Center; General Liability, including, but not limited to Professional Liability coverage in the amount of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate; Corporal Punishment & Hired and Non-Owned Auto Liability coverage in the amount of $1,000,000 per occurrence; Sexual Abuse and Molestation not less than $1,000,000 per occurrence and $1,000,000 annual aggregate; Workers' Compensation based on the statutory requirement of your state. You must also carry special coverage if we approve any request for you to provide in-home training. An Umbrella Liability policy is also recommended.
You must maintain insurance policies covering your entity and LearningRx Franchise Corporation as an "additional insured" and "Grantor of Franchise". We have the right to add categories and adjust the amounts required periodically as we deem necessary. You are required to comply with all property, liability, and other insurance required in the Operations Manual at all times. Yo
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees are required to maintain Workers' Compensation insurance based on the statutory requirements of their specific state. This means the minimum amount of coverage will vary depending on the state in which the Learningrx center is located, as each state has its own laws and regulations regarding workers' compensation.
In addition to Workers' Compensation, Learningrx requires franchisees to carry other insurance coverages, including property insurance, general liability coverage of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate, Corporal Punishment & Hired and Non-Owned Auto Liability coverage in the amount of $1,000,000 per occurrence, and Sexual Abuse and Molestation coverage of not less than $1,000,000 per occurrence and $1,000,000 annual aggregate. Franchisees must also carry special coverage if they provide in-home training, and an Umbrella Liability policy is recommended.
Learningrx franchisees must ensure that all insurance policies cover their entity and LearningRx Franchise Corporation as an "additional insured" and "Grantor of Franchise". Learningrx retains the right to add categories and adjust the required insurance amounts periodically. Franchisees are also obligated to comply with all property, liability, and other insurance requirements outlined in the Operations Manual and any additional insurance required by state or federal law.
Prospective Learningrx franchisees should investigate their state's specific Workers' Compensation requirements to understand the minimum coverage they must obtain. They should also factor in the costs of all required and recommended insurance coverages when assessing the overall financial investment of opening a Learningrx franchise.