When does a modification to the covenants by Learningrx become effective?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer understands and acknowledges that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in Sections 9.01 and 9.02 in this Agreement, or any portion thereof, without Area Developer's consent, effective immediately upon receipt by Area Developer of written notice thereof, and Area Developer agrees that it shall forthwith comply with any covenant as so modified, which shall be fully enforceable.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx has the right to modify the non-compete covenants in its sole discretion. If Learningrx chooses to reduce the scope of any covenant, the modification becomes effective immediately once the Area Developer receives written notice. The Area Developer must then comply with the modified covenant, and the modified covenant will be fully enforceable.
This means that Learningrx franchisees could see their non-compete obligations change during the course of their agreement. These changes could broaden or narrow the restrictions on the franchisee's activities after the franchise agreement ends.
It is important for a prospective Learningrx franchisee to understand that Learningrx can unilaterally change the scope of the non-compete agreement. The franchisee should seek clarification on how often Learningrx has modified these covenants in the past and under what circumstances such modifications are typically made.