Does Learningrx's site location approval constitute final approval of the site for the Center or the proposed franchisee entity?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Should Franchisor approve of the site location per Section 5.1 above, it will give its written approval to the Area Developer to proceed with architectural drawings and final site plans, containing such information as Franchisor requires. The approval of the site location shall not constitute final approval of the site for the Center, or of the entity proposed as franchisee. Upon receipt of the site location approval, Area Developer should make an offer to secure the site via purchase or lease, which offer must be contingent upon final approval by Franchisor of the site and of the proposed franchisee entity.
- C. Should Franchisor provide final site approval and approve of the proposed franchisee entity for a Center, Franchisor and Area Developer (or its affiliate) shall promptly enter into an individual franchise agreement for such Center before the date Area Developer begins construction on the franchise location, which agreement shall be in the form of Franchisor's thencurrent form of franchise agreement. The terms of the individual franchise agreement will then govern the further development and build-out of the Center.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, initial site location approval does not constitute final approval for the Learningrx Center or the proposed franchisee entity. The Area Developer must submit information about the proposed location, including lease terms, land acquisition terms, demographic criteria, and preliminary site plans. If the Area Developer proposes another entity to operate the Center, they must also submit information about the proposed franchisee entity. Learningrx retains the right to request additional information about the site and the proposed franchisee entity.
Even if Learningrx approves the site location, it will provide written approval to proceed with architectural drawings and final site plans. However, this approval does not mean the site or the proposed franchisee entity is fully approved. The Area Developer should make an offer to secure the site via purchase or lease, but this offer must be contingent upon final approval by Learningrx of both the site and the proposed franchisee entity.
Final site approval and franchisee entity approval must occur before Learningrx and the Area Developer enter into an individual franchise agreement. This agreement must be in Learningrx's current form and must be executed before the Area Developer begins construction on the franchise location. The terms of this individual franchise agreement will then govern the further development and build-out of the Center.