Does Learningrx permit pre-existing PACE Licensees and Clinical Licensees to continue operating outside a franchisee's territory regardless of proximity?

According to Learningrx's 2025 Franchise Disclosure Document, Learningrx retains the right to permit pre-existing PACE Licensees and Clinical Licensees to continue operations under the Marks. These licensees may operate either within a franchisee's territory if their zip codes are included in that territory, or outside the territory, irrespective of how close they are to the franchisee's territory.

This policy means that a new Learningrx franchisee could face competition from pre-existing licensees even if those licensees are located nearby. The franchisee's territory is not exclusive, and these pre-existing licensees are allowed to continue their operations. This could impact the franchisee's potential customer base and revenue, as these licensees may already have established relationships with clients in the area.

It is important for prospective Learningrx franchisees to understand that their territory is not fully protected from competition. While Learningrx will not establish another LearningRx Center within the franchisee's territory as long as the franchisee meets minimum revenue requirements, the presence of pre-existing licensees can still pose a competitive challenge. Franchisees should consider the potential impact of these licensees on their business plan and revenue projections.

Prospective franchisees should inquire about the locations and performance of any pre-existing PACE Licensees and Clinical Licensees in or near their intended territory to better assess the competitive landscape. Understanding the scope and impact of these existing operations is crucial for making an informed decision about investing in a Learningrx franchise.