Does Learningrx require franchisees and their employees to execute nondisclosure agreements and intranet/extranet usage agreements?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW THEREFORE, in consideration of the mutual covenant and obligations contained herein, the receipt and sufficiency of which are acknowledged, the parties agree as follows:
CONFIDENTIALITY AGREEMENT
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- Franchisor and/or Franchisee may disclose to Franchisee Affiliate some or all of the Trade Secrets relating to the System. All information and materials, including, without limitation, Operations Manuals, drawings, marketing techniques, specifications, techniques and compilations of data that Franchisor provides to Franchisee and/or Franchisee Affiliate shall be deemed confidential Trade Secrets for the purposes of this Agreement.
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- Franchisee Affiliate shall receive the Trade Secrets in confidence and shall, at all times, maintain them in confidence, and use them only in the course of his employment or association
with a Franchisee and then only in connection with the development and/or operation by Franchisee of a LearningRx Business for so long as Franchisee is licensed by Franchisor to use the System.
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- Franchisee Affiliate shall not at any time make copies of any documents or compilations containing some or all of the Trade Secrets without Franchisor's
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, franchisees and their affiliates are required to sign confidentiality agreements. The agreement stipulates that both Learningrx and the franchisee may disclose trade secrets related to the Learningrx system to the franchisee's affiliates. These trade secrets include, but are not limited to, operations manuals, drawings, marketing techniques, specifications, techniques, and compilations of data provided by Learningrx. All such information is deemed confidential for the purposes of the agreement.
The franchisee's affiliates must receive these trade secrets in confidence and maintain them as such at all times. Their use is restricted to the course of their employment or association with the franchisee, specifically in connection with the development and operation of a Learningrx business. This obligation remains in effect as long as the franchisee is licensed by Learningrx to use the system.
Furthermore, the franchisee's affiliates are prohibited from making copies of any documents or compilations containing the trade secrets without Learningrx's permission. This requirement ensures that sensitive information about the Learningrx system is protected from unauthorized use and disclosure, safeguarding Learningrx's competitive advantage and proprietary methods. The FDD does not specify whether franchisees and their employees are required to execute intranet/extranet usage agreements.