What is the minimum distance Learningrx will maintain between a new PACE license and a Learningrx franchisee's center?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to issue mandatory policies to coordinate such multi-area marketing programs, including the right to establish minimum or maximum pricing for such programs, as permitted by law; and
- (g) to permit pre-existing PACE licensees and Clinical licensees to continue to operate per a PACE license and/or Clinical license anywhere, including inside the Territory, provided, however, Franchisor and Franchisee agree that Franchisor will not enter into any new PACE license for a location that is closer than fifteen (15) miles from the front door of Franchisee's Center and Franchisee acknowledges that Franchisor has the right to enter into Clinical licenses anywhere outside of Territory.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Learningrx will not enter into any new PACE license for a location that is closer than fifteen (15) miles from the front door of a franchisee's Learningrx center. However, Learningrx retains the right to enter into Clinical licenses anywhere outside of the franchisee's territory.
This policy provides a degree of territorial protection for Learningrx franchisees by preventing the establishment of new PACE license locations in close proximity to their centers. This helps to avoid direct competition from other Learningrx-licensed businesses within a certain radius. The 15-mile buffer zone aims to ensure that franchisees have a reasonable opportunity to establish and maintain their customer base without immediate competition from a similar Learningrx operation.
However, it's important to note that this protection is limited to PACE licenses. Learningrx explicitly reserves the right to grant Clinical licenses anywhere outside of the franchisee's territory, which could potentially introduce competition in areas adjacent to the franchisee's protected zone. Additionally, pre-existing PACE licensees and Clinical licensees are allowed to continue operating within the franchisee's territory, meaning that the franchisee may face competition from these existing businesses from the outset.
Prospective franchisees should carefully consider the implications of these territorial provisions, particularly the potential for competition from Clinical licenses and pre-existing licensees. It would be prudent to inquire about the locations of any existing or planned Clinical licenses in the surrounding area to fully assess the competitive landscape.