What is the restriction on the location of a Learningrx Satellite Location Site?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The site ("Site") of Franchisee's Satellite Location may be within the Territory granted to Franchisee under the Franchise Agreement, or it may be outside of the Territory granted to Franchisee under the Franchise Agreement, provided that site is not within an existing franchisee's territory granted pursuant to a valid franchise agreement.
Franchisee acknowledges and agreements that Franchisee will not receive an exclusive or protected territory for its Satellite Location.
Franchisor reserves the right to grant a territory to another franchisee which includes the Site at any time.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee's satellite location can be within or outside the territory granted in the Franchise Agreement. However, the site cannot be within an existing franchisee's protected territory. This means a Learningrx franchisee looking to open a satellite location needs to ensure that the proposed site does not encroach upon another franchisee's exclusive rights.
Learningrx franchisees should also note that they will not receive an exclusive or protected territory for their satellite location. The franchisor retains the right to grant a territory to another franchisee, even if it includes the satellite location's site. This is a significant risk, as a new Learningrx franchise could potentially impact the satellite location's business.
This lack of territorial protection for satellite locations is a notable difference from standard franchise agreements, which typically grant franchisees a defined territory. Prospective Learningrx franchisees should carefully consider this when evaluating the potential of a satellite location and factor in the risk of future competition from other Learningrx centers. It is important to discuss this with Learningrx to understand their criteria for granting new territories and how they might impact existing satellite locations.