Can pre-existing PACE Licensees and Clinical Licensees operate outside my Learningrx territory regardless of proximity?

According to Learningrx's 2025 Franchise Disclosure Document, Learningrx reserves the right to allow pre-existing PACE Licensees and Clinical Licensees to operate under the Marks either inside a franchisee's territory if their zip codes are included in the territory, or outside the territory regardless of how close they are. This means that even if a new Learningrx franchisee invests in a specific territory, pre-existing licensees may continue to operate nearby, potentially drawing customers and impacting the franchisee's business.

This reservation of rights is a significant consideration for prospective Learningrx franchisees. While Learningrx will not establish another franchisee or company-owned outlet within the territory, pre-existing licensees can continue to operate. This could lead to increased competition and potentially lower revenue for the new franchisee. The franchisee should carefully evaluate the potential impact of these pre-existing licensees on their business plan and financial projections.

It is important for potential Learningrx franchisees to understand the extent and location of any pre-existing PACE Licensees and Clinical Licensees before signing the Franchise Agreement. This information can help them assess the potential level of competition and make informed decisions about the viability of the franchise opportunity in their chosen territory. Prospective franchisees should inquire about the number and performance of these pre-existing licensees during their due diligence process.