What is the specific attachment number for the Confidentiality and Covenant Not To Compete Agreement in the Learningrx franchise agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
7.5 Confidentiality and Covenant Not to Compete Agreements.
- (a) If the Franchisee is an entity, then the following individuals must sign Franchisor's standard Confidentiality & Covenant Not to Compete Agreement (Attachment IX) before performing any work at the Business or otherwise having access to Franchisor's Confidential Information: each Member, shareholder, officer, director and partner of the entity, each spouse of such Member, shareholder, officer, director and partner, every manager of the Franchisee or Area Developer, each Guarantor of the Franchisee, the spouse of each Guarantor, and each employee having access to the Franchisor's confidential information.
- (b) If the Franchisee is not an entity, then the following individuals must sign Franchisor's standard Confidentiality & Covenant Not to Compete Agreement (Attachment IX) before performing any work at the Business or otherwise having access to Franchisor's Confidential Information: the spouse of the Franchisee, every manager of the Franchisee, each Guarantor of the Franchisee, the spouse of each Guarantor, and each employee having access to the Franchisor's confidential information. A copy of all such signed agreements shall be delivered to Franchisor within 1 week of their execution.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, there are two attachments related to confidentiality and non-compete agreements. Attachment VIII(a) pertains to the standard Confidentiality and Covenant Not to Compete Agreement, which must be signed by specific individuals associated with the franchisee, such as members, shareholders, officers, directors, partners, managers, guarantors, and employees with access to confidential information. Attachment IX is also referenced as the standard Confidentiality & Covenant Not to Compete Agreement. Attachment VIII(b) is the Spousal and Domestic Partner Confidentiality and Covenant Not to Compete Agreement, which needs to be signed by spouses or domestic partners of the equity owners of the franchisee.
These agreements are crucial for protecting Learningrx's trade secrets, goodwill, and system standards. The agreements ensure that individuals associated with the franchisee, including their spouses or domestic partners, are legally bound to maintain confidentiality and refrain from engaging in competitive activities that could harm the Learningrx business.
Specifically, the franchisee and certain related parties agree not to engage in any Competitive Business during the term of the agreement and for two years after termination. This restriction applies within the franchisee's territory, adjacent counties, a fifty-mile radius of any Learningrx center, and online. A Competitive Business is defined as any business offering learning enhancement, brain training, or math and reading training courses, programs, or products.
Prospective Learningrx franchisees should carefully review these attachments and understand the implications of the confidentiality and non-compete obligations for themselves, their business partners, and their family members. It is important to ensure that all required individuals are willing to sign these agreements before proceeding with the franchise investment.