What right does Learningrx grant to the franchisee for operating a Satellite Location?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| This LearningRx Satellite Addendum ("Addendum") is entered into this day of , 20 , by and between LearningRx Franchise Corporation, a Colorado corporation ("Franchisor"), and , a ("Franchisee"). |
|---|
| RECITALS |
| WHEREAS, on |
| , 20 |
| the |
| parties |
| entered |
| into |
| a |
| franchise |
| agreement ("Franchise Agreement") pursuant to which Franchisee was granted the right to |
| operate a Center at the Premises, using the System and Marks for the term of the Franchise |
| Agreement; |
| WHEREAS, Franchisee desires to obtain a license to operate an additional location |
| ("Satellite Location") under the Marks and in strict conformance with the System and the |
| specifications listed in Franchisor's Operations Manual, and Franchisor is willing to grant |
| Franchisee such a license to operate a Satellite Location under the terms and conditions of this |
| Addendum; and |
| WHEREAS, all capitalized terms used in this Addendum shall have the meaning as defined |
| in the Franchise Agreement. |
| NOW, the parties agree as follows: |
I. GRANT
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- Grant of License. So long as the Franchise Agreement between Franchisor and Franchisee remains in good standing, Franchisor grants to Franchisee and Franchisee accepts from Franchisor, a non-exclusive right and obligation to use the System and Marks to open and operate one Satellite Location, in accordance with the terms of the Franchise Agreement. The Satellite Location must comply with all specifications set forth in Franchisor's current Operations Manual.
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- Term. The term of this Addendum will begin on the date this Addendum is executed ("Execution Date") and, unless it is terminated earlier according to this Addendum, will expire at midnight on the three hundred, sixty-fifth (365th) day after the Execution Date ("Initial Term").
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- Satellite Location Fee. Upon the signing of this Addendum, Franchisee must pay a Satellite Location fee of Five thousand and 00/100 Dollars ($5,000.00) ("Satellite Location Fee"), if the Satellite Location is outside of the Territory. The Satellite Location Fee is fully earned upon signing this Addendum and is non-refundable under any circumstances. Upon making one annual payment of Five thousand and 00/100 Dollars ($5,000.00) or twelve (12) monthly payments of Four hundred fifty and 00/100 Dollars ($450.00) for a Satellite Location outside of the Territory,
Two thousand five hundred and 00/100 Dollars ($2,500.00) will be applied by Franchisor towards a future franchise agreement for Franchisee within the Territory. If approved by Franchisor in writing, this application may be renewed on an annual basis. If the Satellite Location is within the Territory, a reduced Satellite Location Fee of Two thousand four hundred and 00/100 Dollars ($2,400.00) will only be due if Franchisee wishes to have to Satellite Location listed on the LearningRx website.
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- Satellite Location Site.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee is granted a non-exclusive right and obligation to use the Learningrx system and marks to open and operate one Satellite Location, provided the Franchise Agreement remains in good standing. This operation must align with the specifications outlined in Learningrx's current Operations Manual. The term for this satellite location addendum begins on the execution date and expires 365 days later, unless terminated earlier.
The franchisee acknowledges that they will not receive an exclusive or protected territory for their Satellite Location. Learningrx retains the right to grant a territory to another franchisee, even if it includes the Satellite Location's site. Furthermore, Learningrx reserves all rights not specifically granted to the franchisee, including the right to operate or franchise others to operate a Learningrx Training Center in any location, even if it encompasses the franchisee's site.
It is important to note that Learningrx is under no obligation to renew the addendum for the Satellite Location after the initial term. The franchisee does not have the unilateral right to renew the addendum. If Learningrx licenses the right to operate a Learningrx Center to another franchisee and grants them a territory that includes the Satellite Location's site, the franchisee must shut down their Satellite Location by the time the new franchisee opens their Learningrx Training Center and transfer all customers to the new franchisee. The franchisee will not receive compensation or reimbursement of the Satellite Location Fee in such a case.