Is Learningrx's site selection assistance a warranty regarding the property or lease?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is solely responsible for locating a site for the Business and negotiating a lease for the property.
Upon request, Franchisor will provide limited advice and assistance to Franchisee in selecting a site and analyzing a location and in negotiating a lease.
Franchisor will analyze a location by examining population density, traffic patterns, proximity of the proposed location to any other LearningRx Centers, or any other reasonable criteria, as set forth in Section 10.2.
Franchisee agrees that the location of the Center is a factor in the potential for success of the Business and the location will be located close to the Center of the Territory.
Franchisor may reject any location in its discretion, but consent will not be unreasonably withheld.
If Franchisee and Franchisor cannot agree on the site selection, then Franchisee must select two (2) alternative sites.
Franchisor shall provide Franchisee with an evaluation of each site as described above.
Franchisor shall approve or disapprove Franchisee's proposed site within thirty (30) days of the date Franchisor receives written notice of the proposed site from Franchisee.
Any site not approved in writing by Franchisor within the thirty (30) day time period shall be deemed disapproved.
However, Franchisor's assistance in no way constitutes a representation or warranty with respect to the property or the lease.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, while Learningrx offers site selection assistance, this assistance does not constitute a warranty regarding the property or the lease. Specifically, Learningrx will provide limited advice and assistance in selecting a site, analyzing the location, and negotiating a lease. This includes analyzing factors such as population density, traffic patterns, and proximity to other Learningrx Centers.
However, the ultimate responsibility for locating a site and negotiating the lease rests solely with the franchisee. Learningrx retains the right to approve or reject any proposed location, and if the franchisee and Learningrx cannot agree on a site, the franchisee must select two alternative sites for evaluation.
This disclaimer is a standard practice in franchising. It means that while Learningrx offers support, the franchisee bears the risk of the site's suitability and lease terms. Prospective franchisees should conduct their own due diligence and possibly seek independent expert advice to evaluate potential locations and lease agreements before committing to a site. This is crucial because the success of the Learningrx business is closely tied to its location.