Does the Learningrx non-compete agreement apply to online activities?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, this Covenant Not to Compete applies anywhere in the United States. For two (2) years after the termination, transfer, or expiration of this Agreement, for any reason, this Covenant Not to Compete applies: (a) within Franchisee's Territory; (b) within counties adjacent to Franchisee's Territory or within a Territory then operated by or under development by Franchisor or another franchisee of Franchisor; (c) within a fifty mile radius from the boundary of Franchisees Territory or from any other franchised or company-owned LearningRx Training Center, (d) on the Internet or (e) on any other Multi-Area Marketing channels used by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the non-compete agreement does extend to online activities. During the term of the franchise agreement, the non-compete applies anywhere in the United States. After the agreement terminates, the non-compete applies for two years.
The Learningrx non-compete agreement specifically applies to activities (a) within the franchisee's territory; (b) within counties adjacent to the franchisee's territory or within a territory operated by Learningrx or another franchisee; (c) within a fifty-mile radius of the franchisee's territory or any other Learningrx center; (d) on the Internet; or (e) on any other Multi-Area Marketing channels used by Learningrx. This means that franchisees are restricted from engaging in competitive business activities online, in addition to geographic limitations.
This restriction has significant implications for a franchisee. It limits their ability to participate in or operate any competitive business online, even after the franchise agreement ends, for a period of two years. This could affect a franchisee's future business opportunities and should be carefully considered before entering into the agreement.