Does Learningrx have the right to adjust the required insurance amounts periodically?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
based on their use of designated or approved suppliers.
For all LearningRx Centers, you will maintain and purchase insurance in the following amounts and categories: Property insurance adequate to replace the contents of the Center; General Liability, including, but not limited to Professional Liability coverage in the amount of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate; Corporal Punishment & Hired and Non-Owned Auto Liability coverage in the amount of $1,000,000 per occurrence; Sexual Abuse and Molestation not less than $1,000,000 per occurrence and $1,000,000 annual aggregate; Workers' Compensation based on the statutory requirement of your state. You must also carry special coverage if we approve any request for you to provide in-home training. An Umbrella Liability policy is also recommended.
You must maintain insurance policies covering your entity and LearningRx Franchise Corporation as an "additional insured" and "Grantor of Franchise". We have the right to add categories and adjust the amounts required periodically as we deem necessary. You are required to comply with all property, liability, and other insurance required in the Operations Manual at all times. Yo
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx does have the right to periodically adjust the required insurance coverage amounts for its franchisees. The FDD specifies the initial insurance requirements, including property insurance, general liability coverage of $1,000,000 per occurrence and $2,000,000 annual aggregate, corporal punishment & hired and non-owned auto liability coverage of $1,000,000 per occurrence, sexual abuse and molestation coverage of $1,000,000 per occurrence and $1,000,000 annual aggregate, and workers' compensation based on state statutory requirements.
In addition to these specific amounts, Learningrx franchisees must maintain insurance policies that cover both their entity and Learningrx Franchise Corporation as an "additional insured" and "Grantor of Franchise". This protects Learningrx from liabilities arising from the franchisee's operations.
The FDD explicitly states that Learningrx reserves the right to add categories and adjust the insurance amounts periodically as deemed necessary. This means that a franchisee's insurance costs could increase over time if Learningrx decides to raise the coverage requirements. Franchisees are also required to comply with all property, liability, and other insurance requirements detailed in the Operations Manual, which Learningrx can modify at any time. It is important for prospective franchisees to factor in potential future increases in insurance costs when evaluating the financial viability of a Learningrx franchise.