Is Learningrx required to pay a franchisee any compensation for sales made through alternative distribution channels within their territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
the Internet or World Wide Web. We will maintain LearningRx Center Web pages, which will include information regarding your Center.
If we engage in electronic commerce through the Internet or other computer network site or sell through any other alternative distribution channel, and we receive orders for any System products or services calling for delivery or performance in your Territory, then we will offer the order to you at the price we establish. If you choose not to fulfill the order or are unable to do so, then we, one of your affiliates or a third-party we designate (including another franchisee) may fulfill the order, and you will be entitled to no compensation in connection with this.
We and our affiliates reserve the right to use alternative channels of distribution to make sales within your Territory of products or services under trademarks different from the Trademarks you will use under the Franchise Agreement. We and our affiliates reserve the right to use alternative channels of distribution to make sales within your Territory of products or services under our principal trademarks that you will use under the Franchise Agreement. We are not required to pay any compensation to you for soliciting or conducting sales within your Territory.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, franchisees may not receive compensation for sales made through alternative distribution channels within their territory. Learningrx reserves the right to engage in electronic commerce through the Internet or other computer network sites, or sell through other alternative distribution channels. If Learningrx receives orders for system products or services that call for delivery or performance in a franchisee's territory, Learningrx will offer the order to the franchisee at a price that Learningrx establishes. However, if the franchisee chooses not to fulfill the order or is unable to do so, Learningrx, one of its affiliates, or a third party may fulfill the order, and the franchisee will not be entitled to any compensation.
Learningrx and its affiliates also reserve the right to use alternative channels of distribution to make sales within a franchisee's territory of products or services under trademarks different from the trademarks the franchisee will use under the Franchise Agreement. Learningrx and its affiliates also reserve the right to use alternative channels of distribution to make sales within the franchisee's territory of products or services under Learningrx's principal trademarks that the franchisee will use under the Franchise Agreement. Learningrx is not required to pay any compensation to the franchisee for soliciting or conducting sales within their territory.
Learningrx exclusively reserves alternative channels of distribution such as the Internet, catalog sales, telemarketing, or other direct marketing as channels of distribution for Learningrx. The franchisee may not independently use alternative channels of distribution to make sales within or outside their territory. This means that Learningrx retains significant control over how products and services are sold, especially through channels like the internet, and franchisees have limited rights to those sales, even if they occur within their territory.