Where are the specific insurance policy requirements for a Learningrx franchise detailed?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Original or duplicate copies of all insurance policies, certificates of insurance, or other proof of insurance acceptable to Franchisor shall be furnished to Franchisor together with proof of payment within thirty (30) days of issuance thereof.
In the event Franchisee fails to obtain the required insurance and keep the same in full force and effect, Franchisee shall pay Franchisor upon demand the premium cost thereof, which Franchisor shall then forward to the insurance carrier.
Notwithstanding the foregoing, failure of Franchisee to obtain insurance constitutes a material breach of this Agreement entitling Franchisor to terminate this Agreement pursuant to the provisions of this Agreement.
Franchisee will also procure and pay for all other insurance required by state or federal law, including, without limitation, workers' compensation and unemployment insurance.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Item 23 states that the specific insurance policy requirements are not detailed within the document itself. However, franchisees are required to furnish the franchisor with copies or certificates of all insurance policies as proof of coverage within 30 days of issuance.
The Learningrx franchise agreement mandates that franchisees obtain and maintain the required insurance coverage. Should a franchisee fail to do so, Learningrx has the right to procure the necessary insurance and charge the premium cost to the franchisee. Moreover, failure to maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination of the agreement.
In addition to the insurance requirements specified by Learningrx, franchisees are also responsible for procuring and paying for any other insurance mandated by state or federal law. This includes, but is not limited to, worker's compensation and unemployment insurance. Since the specific insurance policy requirements are not listed in the FDD, a prospective franchisee should ask Learningrx for a comprehensive list of required insurance types and coverage levels during their due diligence.