Is Learningrx obligated to renew the Satellite Location Addendum after the Initial Term?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Renewal.
Franchisor is under no obligation to renew this Addendum after the Initial Term.
Franchisee does not have any right to unilaterally renew this Addendum.
Franchisor may elect to grant Franchisee the right to extend this Addendum for additional three hundred, sixty-five (365) day periods (each a "Successor Term") after the expiration of the current term.
If Franchisee exercises its right to a Successor Term, it must pay Franchisor an additional Satellite Location Fee before the first day of that Successor Term.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx is under no obligation to renew the Satellite Location Addendum after the initial term. The franchisee also does not have the right to unilaterally renew the addendum. However, Learningrx may choose to grant the franchisee the right to extend the addendum for additional 365-day periods, each referred to as a Successor Term.
If Learningrx grants the franchisee the option to extend the addendum for a Successor Term and the franchisee chooses to exercise this right, the franchisee must pay Learningrx an additional Satellite Location Fee before the first day of that Successor Term. The FDD does not specify the amount of this additional Satellite Location Fee.
This means that a Learningrx franchisee operating a Satellite Location has no guarantee of renewal after the initial term of the addendum, which is 365 days from the execution date. Renewal is at Learningrx's discretion, and if granted, it will require an additional fee from the franchisee.