Does Learningrx permit pre-existing PACE Licensees and Clinical Licensees to continue operating in a franchisee's territory if their zip codes are included in the territory?

According to Learningrx's 2025 Franchise Disclosure Document, Learningrx reserves the right to allow pre-existing PACE Licensees and Clinical Licensees to continue operations within a franchisee's territory, even if their zip codes are included in that territory. This also applies to locations outside the territory, regardless of proximity. This means that a new Learningrx franchisee may face competition from these pre-existing licensees operating under different trademarks and trade names within their designated area.

This reservation of rights can impact a franchisee's potential market share and revenue. While Learningrx grants a territory, it is not exclusive, and franchisees must be aware that other educational service providers, including those previously licensed by Learningrx under different agreements, may already be serving the same customer base. This could make it more challenging for a new franchisee to establish a strong presence and achieve their financial goals.

Prospective franchisees should carefully consider the potential impact of these pre-existing licensees on their business. It would be prudent to investigate the presence and market share of any PACE Licensees and Clinical Licensees in the target territory before signing the Franchise Agreement. Understanding the competitive landscape is crucial for developing a realistic business plan and assessing the potential risks and rewards of investing in a Learningrx franchise.