What did Learningrx offer to the Virginia consumer as part of the Consent Order settlement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 3 LITIGATION
Governmental Actions:
In the Matter of the Commonwealth of Virginia vs. LearningRx Franchise Corporation, Consent Order SEC-2009-00071. On or about October 15, 2009, LearningRx Franchise Corporation entered into a consent order with the state of Virginia in full settlement of a claim that LearningRx had offered one franchise in the state of Virginia prior to the completion of the registration process allowing it to do so. Pursuant to the consent order agreed to by LearningRx, and without admitting nor denying the claim, a rescission was offered to the Virginia consumer who had entered into a franchise agreement with LearningRx and LearningRx agreed to reimburse adminis
Source: Item 3 — LITIGATION (FDD page 12)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a consent order was entered into with the state of Virginia on October 15, 2009, due to Learningrx offering a franchise in Virginia before completing the registration process. As part of the settlement, Learningrx offered the Virginia consumer who had entered into a franchise agreement a rescission, which means the cancellation of the contract and a return to the status quo before the agreement.
In addition to the rescission offer, Learningrx agreed to reimburse administrative costs of $1,800. This payment was made in full settlement of all claims related to the violation. The consent order was agreed to by Learningrx without admitting or denying the claim.
This settlement indicates the importance of franchise registration compliance. Offering or selling a franchise before proper registration can lead to legal action, requiring the franchisor to offer rescission and cover costs. Prospective franchisees should confirm that Learningrx is fully compliant with franchise registration and disclosure laws in their state to avoid similar issues.