Does Learningrx require disputes regarding trademarks to be settled through arbitration?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
he Parties expressly agree that the provisions in this Article 15 will not prevent Franchisee nor any of Franchisee's Affiliates, from acquiring the rights to operate one (1) or more additional Centers. In addition, Franchisee is prohibited from requiring any of Franchisee's Affiliates to sign any agreement restricting such Franchisee Affiliate from purchasing a Center from Franchisor or any existing Franchisee of Franchisor
16. DISPUTE RESOLUTION
16.1 Arbitration. Franchisor shall have the right, but not the obligation, to enforce this Agreement by the judicial process (and not by arbitration): (1) to protect any of its rights regarding any of its trademarks or to protect any of its intellectual property; (2) to protect any security interest; and (3) and to pursue any rights it may have under any leases, subleases, sales, promissory notes, purchases, security agreements, covenants not to compete or other agreements with Franchisee. Except as provided above, all controversies, disputes or claims between the Franchisor, its officers, directors, shareholders, sales people,
Area Developers, subsidiaries and affiliated companies and their shareholders, officers, directors, agents, employees and attorneys (in their respective capacity) and the Franchisee (and its owners and guarantors, if applicable) arising out of or related to: (1) this Agreement or any other agreement between the parties or any provision of such agreements; (2) the relationship of the parties hereto; (3) the validity of this Agreement or any other agreement between the parties or any provision of such agreements; or (4) any Licensed Method, shall be submitted for arbitration on demand of either party. Such arbitration proceedings shall be conducted in Denver, Colorado, and by one arbitrator chosen by the parties and experienced in franchise law. If the parties are unable to agree to the selection of an arbitrator within ten business days of the date of any written demand for arbitration made hereunder. The parties shall each select one arbitrator and the two selected arbitrators shall select a single arbitrator to hear the matter.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx retains the right to pursue disputes regarding its trademarks through the judicial process rather than arbitration. Specifically, Learningrx is not obligated to use arbitration to protect its trademark rights or intellectual property.
However, the document also states that, except for Learningrx's right to protect its trademarks and intellectual property through the judicial process, all other controversies, disputes, or claims between Learningrx and the franchisee must be submitted for arbitration if either party demands it. This includes disputes relating to the Franchise Agreement, the relationship between the parties, the validity of the agreement, or any Licensed Method.
The arbitration proceedings will be conducted in Denver, Colorado, by a single arbitrator experienced in franchise law, chosen by both parties. If the parties cannot agree on an arbitrator within ten business days of a written demand for arbitration, each party will select an arbitrator, and those two arbitrators will then select a single arbitrator to hear the case. The parties agree to use the services of Judicial Arbitration Group, Inc., or the American Arbitration Association to administer the arbitration, which will be conducted according to the American Arbitration Association's Commercial Arbitration Rules.