Are the prices for equipment, inventory, and supplies offered at commercially reasonable prices to Learningrx franchisees?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may negotiate marketing programs with suppliers and obtain advertising allowances or rebates for doing so and may utilize such allowances or rebates in any manner in which Franchisor elects, in its sole discretion, provided, however, that the prices for such equipment, inventory, and supplies are offered at commercially reasonable prices to Franchisee.
Except for clerical supplies, Franchisee shall purchase all products, equipment, services, supplies and materials required for the operation of the Business from suppliers designated or approved by Franchisor, provided, however, that the prices for such products, equipment, services, supplies and materials required for the operation of the Business are offered at commercially reasonable prices to Franchisee; provided, however, Franchisee acknowledges and agrees that the term "commercially reasonable" means that such products, equipment, services, supplies and materials must first comply with system standards before any party can evaluate or judge the commercial reasonability of the pricing for such items.
However, if Franchisee proposes to offer, conduct or utilize any services, products, materials, forms, items, supplies or services for use in connection with or sale through the Business which are not previously approved by Franchisor as meeting its specifications, Franchisee shall first request approval in writing from Franchisor.
Franchisor may, in its sole discretion, for any reason whatsoever, elect to withhold such approval; however, in order to make such determination, Franchisor reserves the right to require submission of specifications, information or samples of such products, services, materials, forms, items or supplies.
Franchisor shall not charge Franchisee for Franchisor's evaluation services.
Franchisor will advise Franchisee within thirty (30) days from the date of Franchisor's receipt of Franchisee's written request whether such products, services, materials, forms, items or supplies meet its specifications.
If Franchisor does not approve Franchisee's request within such thirty (30) day period, the request will be deemed denied.
Approved product descriptions and supplier contact information are prescribed in the Operations Manual.
If there is no designated or approved supplier for particular items, Franchisee may purchase from suppliers who meet all of Franchisor's specifications and standards as to quality, composition, finish, appearance and service,
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx specifies or approves certain equipment, inventory, and supplies used in the business. Learningrx may also negotiate marketing programs with suppliers and obtain advertising allowances or rebates. However, the prices for the equipment, inventory, and supplies must be offered at commercially reasonable prices to the franchisee.
Except for clerical supplies, Learningrx franchisees must purchase all products, equipment, services, supplies, and materials required for the operation of the business from suppliers designated or approved by Learningrx. These items must also be offered at commercially reasonable prices to the franchisee. The term "commercially reasonable" means that such products, equipment, services, supplies, and materials must first comply with system standards before any party can evaluate or judge the commercial reasonability of the pricing for such items.
If a Learningrx franchisee proposes to offer, conduct, or utilize any services, products, materials, forms, items, supplies, or services not previously approved by Learningrx, the franchisee must first request approval in writing from Learningrx. Learningrx may withhold approval for any reason. To make a determination, Learningrx reserves the right to require submission of specifications, information, or samples of such products, services, materials, forms, items, or supplies. Learningrx will advise the franchisee within thirty days of receipt of the written request whether the items meet its specifications. If Learningrx does not approve the request within the thirty-day period, the request will be deemed denied. Approved product descriptions and supplier contact information are prescribed in the Operations Manual.
If there is no designated or approved supplier for particular items, the Learningrx franchisee may purchase from suppliers who meet all of Learningrx's specifications and standards as to quality, composition, finish, appearance, and service.