Can pre-existing PACE Licensees and Clinical Licensees operate in a Learningrx franchisee's Territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
We also reserve the right to issue mandatory policies to coordinate these multi-area marketing programs including the right to establish minimum or maximum pricing for such programs, as permitted by law; and
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- to permit pre-existing PACE Licensees and Clinical Licensees, if any, to continue to operate in your Territory if their zips codes are included in your Territory, or outside your Territory regardless of proximity to your Territory, under the Marks.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, pre-existing PACE Licensees and Clinical Licensees may continue to operate within a franchisee's territory. Specifically, Learningrx retains the right to permit these licensees to operate within a franchisee's territory if their zip codes are included in that territory. This right extends to operations outside the territory, regardless of proximity, and allows them to operate under Learningrx's Marks.
This reservation of rights has significant implications for prospective Learningrx franchisees. It means that even within a defined territory, a franchisee may face competition from pre-existing licensees operating under the Learningrx brand. This could impact the franchisee's potential customer base and revenue. The FDD also states that a Learningrx franchisee may face competition from other franchisees, from outlets that Learningrx owns, or from other channels of distribution or competitive brands that Learningrx controls.
It is important for potential franchisees to understand the extent of any pre-existing PACE Licensees and Clinical Licensees in their target territory before investing in a Learningrx franchise. This information can help them assess the potential level of competition and make informed decisions about the viability of the franchise opportunity. Franchisees should also inquire about the number and performance of these pre-existing licensees to better understand the competitive landscape.
Furthermore, Learningrx also retains several other rights that could impact a franchisee's business. These include the right to operate Learningrx Centers or remote training services outside the franchisee's territory, use the Marks to sell products or services through alternative channels of distribution, and use other proprietary marks or methods in the operation of a business offering educational services, even within the franchisee's territory.