Does signing the Learningrx agreement create an employment relationship between the Franchisor and Spousal Affiliates?

According to Learningrx's 2025 Franchise Disclosure Document, the execution of the agreement by Spousal Affiliates will not be deemed to create an employment relationship between Learningrx and the Spousal Affiliates. Spousal Affiliates are required to sign the agreement as a condition for accessing and using Learningrx's confidential information while performing their duties as an owner, spouse, employee, or contractor of the franchisee. Spousal Affiliates waive any claims to be considered an employee of Learningrx by signing the agreement, to the extent permitted by law. This waiver applies under both federal law and the laws of the state where the Spousal Affiliates reside and are 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 the Spousal Affiliates of its franchisees. By explicitly stating that no employment relationship is created and securing a waiver from the Spousal Affiliates, Learningrx aims to maintain a clear distinction between its role as a franchisor and the employment relationships that exist within the franchisee's business. This is a common practice in franchising to ensure that the franchisor's responsibilities and liabilities are well-defined and limited.

Prospective franchisees should understand that while their spouses or affiliates may be required to sign agreements related to confidentiality and non-competition, these agreements do not establish an employment relationship with Learningrx. The employment relationship, if any, exists solely between the franchisee and their spouse or affiliate. Franchisees should ensure that their Spousal Affiliates fully understand the implications of signing these agreements, particularly the waiver of any claim to be considered an employee of Learningrx.