What rights does Learningrx grant to the franchisee under the Franchise Agreement?
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
-
- 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.
-
- 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").
-
- 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,
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the 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 Satellite Location must adhere to the specifications outlined in Learningrx's current Operations Manual. The franchisee also has the right to service any persons within their designated territory.
However, Learningrx retains several rights, including the right to market on the Internet and use the Learningrx marks online, encompassing websites, social networking sites, domain names, and advertising. The franchisee is restricted from independent internet marketing or using domain names similar to Learningrx's marks without prior written approval from Learningrx. All franchisee website access is intended to be routed through Learningrx's homepage.
Furthermore, Learningrx reserves the right to grant territories to other franchisees, even if such territories include the franchisee's Satellite Location site. Learningrx and its affiliates may also own, operate, or franchise others to operate a Learningrx Training Center in any location, potentially creating territories that overlap with the franchisee's site. These rights are retained by Learningrx without any obligation to compensate the franchisee.
These stipulations highlight the importance of understanding the limitations and conditions placed on franchisees, particularly regarding internet marketing and territorial exclusivity. Prospective franchisees should carefully consider these factors and seek clarification from Learningrx regarding any potential conflicts or restrictions before entering into a franchise agreement.