Does Learningrx have the right of first refusal to acquire a Learningrx franchisee's business?

According to the 2025 Learningrx Franchise Disclosure Document, Learningrx does have the right of first refusal to acquire a franchisee's business. This means that if a Learningrx franchisee receives an offer to purchase their business, Learningrx has the option to match that offer and acquire the business themselves. This right applies both to franchisees operating under a standard Franchise Agreement and those operating under an Area Developer Agreement.

For a prospective franchisee, this right of first refusal means that they cannot simply sell their business to anyone they choose. They must first offer Learningrx the opportunity to buy the business on the same terms. This could potentially limit the franchisee's ability to negotiate the highest possible price for their business, as potential buyers may be less interested if they know Learningrx has the right to step in and purchase the business instead.

The Franchise Agreement states this right is found in Section 14.07 and Attachment XI, while the Area Developer Agreement references Section 7.06. The FDD also indicates that Learningrx has the option to purchase a franchisee's inventory and equipment at fair market value if the franchise is terminated for any reason, as detailed in Section 14.07 and Attachment XI of the Franchise Agreement.

It is important for prospective Learningrx franchisees to carefully review these sections of the Franchise Agreement and Area Developer Agreement to fully understand the implications of Learningrx's right of first refusal and option to purchase the business. Understanding these conditions is crucial for making informed decisions about investing in a Learningrx franchise.