What right does Learningrx grant to the franchisee for a Satellite Location?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
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.
Satellite Location Site.
[Item 23: RECEIPT]
Renewal.
Franchisor is under no obligation to renew this Addendum after the Initial Term.
Franchisee does not have any right to unilaterally renew this Addendum.
Franchisor may elect to grant Franchisee the right to extend this Addendum for additional three hundred, sixty-five (365) day periods (each a "Successor Term") after the expiration of the current term.
If Franchisee exercises its right to a Successor Term, it must pay Franchisor an additional Satellite Location Fee before the first day of that Successor Term.
Satellite Location Site.
The site ("Site") of Franchisee's Satellite Location may be within the Territory granted to Franchisee under the Franchise Agreement, or it may be outside of the Territory granted to Franchisee under the Franchise Agreement, provided that site is not within an existing franchisee's territory granted pursuant to a valid franchise agreement.
Franchisee acknowledges and agreements that Franchisee will not receive an exclusive or protected territory for its Satellite Location.
Franchisor reserves the right to grant a territory to another franchisee which includes the Site at any time.
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. The satellite location must adhere to the specifications outlined in Learningrx's current operations manual. This right is established through a Satellite Addendum to the existing franchise agreement.
The term for the Satellite Addendum begins on the date of execution and extends until midnight on the 365th day after the execution date, referred to as the "Initial Term." The franchisee must pay a satellite location fee of $5,000 if the satellite location is outside the territory already granted to the franchisee. If the satellite location is within the franchisee's territory, a reduced fee of $2,400 is due only if the franchisee wants the satellite location listed on the Learningrx website.
It is important to note that Learningrx is under no obligation to renew the addendum after the initial term, and the franchisee does not have the unilateral right to renew it. However, Learningrx may elect to grant the franchisee the right to extend the addendum for additional 365-day periods, each considered a "Successor Term," after the current term expires. If the franchisee chooses to exercise the right to a Successor Term, they must pay an additional satellite location fee before the first day of that Successor Term. The franchisee does not receive an exclusive or protected territory for the satellite location, and Learningrx retains the right to grant a territory to another franchisee that includes the satellite location's site at any time.