For Learningrx, does the non-compete restriction on a Spousal Affiliate after termination apply to areas under development by the Franchisor?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ause loss or damage to the business or business opportunities, affairs, reputation and goodwill of, or otherwise negatively reflect upon, Franchisor, the System or the Licensed Marks; and
The term "Competitive Business" as used in this Agreement will mean any business offering, or granting franchises or licenses to others to provide: (i) learning enhancement courses, programs or products; (ii) brain training or cognitive training courses, programs or products; or (iii) math and reading training courses, programs, or products.
-
- This Covenant Not to Compete shall apply:
- a. during the term of Franchisee Affiliate's relationship, association with or employment by Franchisee anywhere within the United States; and,
- b. for the two years following the termination of Franchisee Affiliate's association with or employment by Franchisee:
- i.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the non-compete agreement for a Spousal Affiliate extends beyond the immediate territory of the franchisee. Specifically, for two years following the termination of the Spousal Affiliate's association with or employment by the franchisee, the non-compete applies within several defined areas.
These restricted areas include not only the franchisee's territory or any area serviced by the franchisee but also counties adjacent to the franchisee's territory. Importantly, the restriction also encompasses any territory then operated by or under development by Learningrx itself or another Learningrx franchisee. This means that a Spousal Affiliate is restricted from engaging in a competitive business within areas Learningrx is actively developing, protecting Learningrx's expansion efforts.
Additionally, the non-compete extends to a fifty-mile radius from the boundary of the franchisee's territory or from any other franchised or company-owned Learningrx Training Center. The non-compete also applies to activities conducted on the Internet or on any other Multi-Area Marketing channels used by Learningrx. These comprehensive restrictions aim to protect Learningrx's market presence and future growth from competition by those who have had access to its trade secrets and operational methods.