Does Learningrx have the right to approve or reject a proposed Learningrx location submitted by the Area Developer?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
5. LOCATION OF CENTERS
- 5.01. Site Approval. With respect to each Center to be developed under this Agreement:
- A. As soon as Area Developer locates a site within the Development Territory that it believes is suitable for construction of a Center, Area Developer shall submit to Franchisor such information about the proposed location including, without limitation, lease terms, land acquisition terms, demographic criteria and preliminary site plans showing building orientation, proposed unit location, parking layout, and certain other information, as Franchisor may require from time to time. If Area Developer proposes that another entity will operate the Center, Area Developer must also submit information to Franchisor regarding the proposed franchisee entity. Franchisor reserves the right to request as much additional information regarding the site and the
proposed franchisee entity as it deems necessary, in its sole discretion, and Area Developer agrees to provide such information immediately upon request. Franchisor may approve or reject, in its sole discretion, any location submitted by Area Developer.
- B. Should Franchisor approve of the site location per Section 5.1 above, it will give its written approval to the Area Developer to proceed with architectural drawings and final site plans, containing such information as Franchisor requires. The approval of the site location shall not constitute final approval of the site for the Center, or of the entity proposed as franchisee. Upon receipt of the site location approval, Area Developer should make an offer to secure the site via purchase or lease, which offer must be contingent upon final approval by Franchisor of the site and of the proposed franchisee entity.
- C. Should Franchisor provide final site approval and approve of the proposed franchisee entity for a Center, Franchisor and Area Developer (or its affiliate) shall promptly enter into an individual franchise agreement for such Center before the date Area Developer begins construction on the franchise location, which agreement shall be in the form of Franchisor's thencurrent form of franchise agreement. The terms of the individual franchise agreement will then govern the further development and build-out of the Center.
- 5.02. Center Location. The location of each Center shall be selected by the Area Developer, within the Development Territory, subject to Franchisor's prior approval as set forth in this Section 5, which approval shall take into account all relevant demographic information then available to Franchisor. The establishment of any proposed site by Area Developer prior to approval of Franchisor shall be the sole risk and responsibility of Area Developer and shall not obligate Franchisor in any way to approve the same. The approval of a proposed site by Franchisor does not in any way constitute a warranty or representation by Franchisor as to the suitability of such site for location of a Center.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx has the authority to approve or reject any proposed location submitted by an Area Developer. The Area Developer is responsible for finding a suitable site within their designated Development Territory. They must then submit comprehensive information about the proposed location to Learningrx for approval. This information includes lease terms, land acquisition terms, demographic criteria, and preliminary site plans. Learningrx retains the right to request additional information about the site and the proposed franchisee entity, and the Area Developer is obligated to provide this information promptly.
Learningrx has the discretion to either approve or reject the proposed location. If Learningrx approves the site, they will provide written approval to the Area Developer, allowing them to proceed with architectural drawings and final site plans. However, this initial approval does not guarantee final approval of the site or the proposed franchisee entity. The Area Developer should then make an offer to secure the site through purchase or lease, contingent upon final approval from Learningrx.
Final site approval from Learningrx, along with approval of the proposed franchisee entity, is required before the Area Developer can begin construction on the franchise location. Once both approvals are granted, Learningrx and the Area Developer (or its affiliate) will enter into an individual franchise agreement. This agreement, based on Learningrx's current standard form, will govern the subsequent development and build-out of the Learningrx Center. The Area Developer bears the sole risk and responsibility if they establish a site before receiving Learningrx's approval, and Learningrx is not obligated to approve such a site. Furthermore, Learningrx's approval does not constitute a warranty or representation regarding the site's suitability for a Learningrx Center.