Does signing the Learningrx agreement create an employment relationship between the franchisor and the franchisee affiliate?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee Affiliate acknowledges and agrees that Franchisee Affiliate is signing this Agreement as a condition for receiving access to, and the ability to use, Franchisor's confidential information in the performance of Franchisee Affiliate's duties and obligations as an owner, spouse, employee or contractor of Franchisee and that the execution of this Agreement will not be deemed to create an employment relationship between Franchisor and Franchisee Affiliate and Franchisor. Franchisee Affiliate hereby waives, to the greatest extent permitted by federal law and the law of the state or states in which Franchisee Affiliate resides and is employed by Franchisee, any claim that
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, signing the agreement does not create an employment relationship between Learningrx and the franchisee affiliate. The agreement explicitly states that the franchisee affiliate acknowledges and agrees that signing the agreement is a condition for accessing and using Learningrx's confidential information, but it will not be deemed to create an employment relationship between Learningrx and the franchisee affiliate.
Furthermore, the franchisee affiliate waives any claim to be deemed an employee of Learningrx by signing the agreement, to the greatest extent permitted by federal and state law. This waiver applies to the laws of the state where the franchisee affiliate resides and is employed by the franchisee.
This provision is designed to protect Learningrx from potential liabilities or obligations that could arise from an employer-employee relationship with individuals who are affiliated with the franchisee but not directly employed by Learningrx. This is a fairly standard practice in franchising, as franchisors generally want to maintain a clear distinction between their employees and the employees of their franchisees.