Does Learningrx have the right to enter into Clinical licenses anywhere outside of the Learningrx franchisee's territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor reserves the right to issue mandatory policies to coordinate such multi-area marketing programs, including the right to establish minimum or maximum pricing for such programs, as permitted by law; and
- (g) to permit pre-existing PACE licensees and Clinical licensees to continue to operate per a PACE license and/or Clinical license anywhere, including inside the Territory, provided, however, Franchisor and Franchisee agree that Franchisor will not enter into any new PACE license for a location that is closer than fifteen (15) miles from the front door of Franchisee's Center and Franchisee acknowledges that Franchisor has the right to enter into Clinical licenses anywhere outside of Territory.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx has the right to enter into Clinical licenses anywhere outside of a franchisee's territory. This means that while a franchisee is granted a specific territory where Learningrx will not operate or franchise another fixed location for a Learningrx center, this territorial protection does not extend to Clinical licenses.
This is significant for prospective franchisees because Learningrx could license a Clinical operation near a franchisee's territory, potentially impacting their business. While the franchisee has the right to service anyone in their territory, Learningrx retains specific rights, including the right to implement multi-area marketing programs and allow pre-existing PACE and Clinical licensees to continue operating anywhere, even within a franchisee's territory. However, Learningrx agrees not to enter into any new PACE license within fifteen miles of the franchisee's center.
Therefore, a Learningrx franchisee's territory is protected from other Learningrx centers, but not necessarily from Clinical licenses. This distinction is important for franchisees to understand, as it could affect their potential market and revenue. Franchisees should consider the potential impact of Clinical licenses when evaluating a location and projecting their business's financial performance.