What obligations remain in effect for a Learningrx franchisee during the Interim Period?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
3.6 Interim Period. If Franchisee does not sign a new Franchise Agreement prior to the expiration of this Agreement and continues to accept the benefits of this Agreement after the expiration of this Agreement, then at the option of Franchisor, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a franchise to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("Interim Period") until one (1) party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate thirty (30) days after receipt of the notice to terminate the Interim Period. In the latter case, all obligations of Franchisee shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement shall be deemed to take effect upon termination of the Interim Period. In addition, Franchisee acknowledges that Franchisee is obligated to pay the Interim Period Fee (as defined below) for each month during any Interim Period. The Interim Period Fee will be in addition to all other fees and costs payable by Franchisee pursuant to this Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if a franchisee continues to operate after the expiration of the Franchise Agreement without signing a new agreement, Learningrx has the option to treat the agreement as either expired or continued on a month-to-month basis, known as the "Interim Period".
If Learningrx chooses to continue the agreement on an interim basis, all obligations of the franchisee remain in full force and effect as if the agreement had not expired. Additionally, all obligations and restrictions imposed on the franchisee upon the expiration of the agreement take effect upon the termination of the Interim Period.
During the Interim Period, the Learningrx franchisee is obligated to pay an Interim Period Fee, in addition to all other fees and costs payable under the original agreement. The FDD does not specify the amount of this fee. This means that the franchisee must continue to meet all requirements of the original agreement, including operational standards, payment of royalties, and adherence to Learningrx's system standards, while also paying an additional fee for the temporary extension.