factual

Does Learningrx have to offer franchise renewal terms generally available to other franchisees?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 2.02. Renewal. Franchisor, in its sole discretion, may permit Area Developer to renew this Agreement for an additional term; provided that, without limiting the foregoing, the Area Developer has not defaulted in its obligations under this Agreement or any other agreement with Franchisor, and the parties agree in writing to an extension of the Development Schedule.

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, the franchisor has sole discretion regarding renewals for Area Developer agreements. Specifically, Learningrx may permit an Area Developer to renew their agreement for an additional term. However, this is contingent upon the Area Developer not being in default of their obligations under the agreement or any other agreement with Learningrx. Additionally, both parties must agree in writing to an extension of the Development Schedule.

For franchisees operating a Satellite Location, Learningrx is under no obligation to renew the addendum after the initial term. The franchisee does not have the unilateral right to renew the addendum. Learningrx may choose to grant the franchisee the right to extend the addendum for additional 365-day periods, each considered a Successor Term.

If a Learningrx franchisee exercises their right to a Successor Term for a Satellite Location, they must pay Learningrx an additional Satellite Location Fee before the first day of that Successor Term. This indicates that renewal is not guaranteed and is subject to Learningrx's discretion and potentially new terms or fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.