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Is it possible that laws and regulations regarding the operation of a Learningrx center will vary by state or municipality?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

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Regulations

There may be specific laws or regulations in your state or municipality regarding the operation of this Center. You should also familiarize yourself with federal, state, and local laws of a more general nature which may affect the operation of your Center. You must comply with employment, health and safety,

workers' compensation, insurance, licensing, and similar laws and regulations. The laws in your state or municipality may be more or less stringent. You should examine these laws before purchasing a Center from us.

If you collect any information from customers, it may contain personal information of individuals which is protected by law. You are also responsible for complying with all applicable current and future federal, state and local laws, regulations and requirements, including the California Consumer Privacy Act (as applicable), pertaining to the collection, protection, use, sale, disposal and maintenance of such personal information. Personal information includes information that identifies, relates to, describes, is capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer, potential consumer, individual or household, as such term may be further defined or amended by applicable federal, state and local laws, regulations and requirements. You may also be required to comply with optin requirements on your website.

In certain states, you must have a licensed medical professional, psychologist, neuropsychologist, or other licensed psychological examiner to administer or interpret certain tests used in the LearningRx program. It is your responsibility to ensure that only properly credentialed and licensed professionals are administering such tests in compliance with state law. These laws and requirements change periodically, and it is your job to remain in compliance with these changes. The business of operating a LearningRx Training Center franchise is subject to all of the laws, codes and regulations (referred to below generally as "laws") normally applicable to educational businesses. These include: (1) federal, (2) state, and (3) in most instances, city, county, parish, borough, municipality or other local laws. If you are challenged at any time by a state or regulatory authority regarding your compliance with these laws, you will be solely responsible for paying all expenses, including attorney's fees, incurred by you in defending your business practices.

Franchisor's business model is a hybrid business model providing both in-person live and remote services for clients. Each LearningRx Training Center can operate completely remotely if local government requirements institute shelter-in-place orders or shutdowns.

General Laws Regulating the Education Industry.

Many jurisdictions have daycare or childcare laws which require licensing, bonding, insurance, building code, safety, teacher-to-student ratios, hours, health (e.g. immunizations), instructor licensing, fingerprinting, criminal background checks and other similar requirements.

In some jurisdictions the franchisee may be subject to regulation as if it were a school. In addition to the potential regulations listed above, these could include regulations requiring teacher and curricula accreditation.

Federal. Examples of other federal laws affecting many small businesses are wage and hour, occupational health and safety, equal employment opportunity, taxes, hazardous materials communication to employees, hazardous waste and environmental, and the Americans With Disabilities Act.

State. State laws may cover the same topics as federal laws. Examples of other state laws affecting many small businesses include environmental, occupational health and safety, fire, taxes, health, and building and construction laws.

Local. Local laws may cover the same topics as federal and state laws. Examples of other local laws affecting many small businesses include health and sanitation, building codes, fire codes, permits, and waste disposal.

The above are examples of some, but not all of the laws that may be applicable to the franchised business described in the Disclosure Document. The Franchise Agreement places the responsibility for complying with all applicable laws and regulations upon you, the franchisee. You should research these requirements before you invest.

ITEM 2 BUSINESS EXPERIENCE

Chief Executive Officer: Kim Hanson

Ms. Hanson has served as our Chief Executive Officer since January 2017. Ms. Hanson has also served as our Vice President of Franchisee Support from October 2004 until January 2017. Ms. Hanson has also served as the Director of Product Development for LearningRx, Inc. since May 2002.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS, AND AFFILIATES (FDD pages 8–11)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the operation of a Learningrx Training Center is subject to various federal, state, and local laws and regulations. These include general laws applicable to educational businesses, as well as specific laws related to employment, health and safety, workers' compensation, insurance, and licensing. The FDD emphasizes that these laws can vary, with some states or municipalities having more or less stringent requirements than others. Therefore, a prospective Learningrx franchisee must examine the specific laws in their state and municipality before purchasing a center. This includes staying up-to-date with any changes to these laws and regulations.

Many jurisdictions have daycare or childcare laws that may require licensing, bonding, insurance, specific building codes, safety measures, teacher-to-student ratios, set hours, health requirements such as immunizations, instructor licensing, fingerprinting, criminal background checks, and other similar requirements. In some instances, a Learningrx franchisee may be subject to regulation as if the center were a school, which could include regulations requiring teacher and curricula accreditation.

The Franchise Agreement places the responsibility for complying with all applicable laws and regulations on the franchisee. If a franchisee is challenged by a state or regulatory authority regarding compliance, they will be solely responsible for all expenses, including attorney's fees, incurred in defending their business practices. Learningrx also notes that each LearningRx Training Center can operate completely remotely if local government requirements institute shelter-in-place orders or shutdowns.

Given the variability and complexity of these regulations, Learningrx advises prospective franchisees to thoroughly research these requirements before investing in a franchise. This due diligence is crucial to ensure compliance and avoid potential legal issues or expenses. Franchisees should consult with legal and business professionals to fully understand their obligations and responsibilities under applicable laws.

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.