What specific right does a Learningrx franchisee receive to operate a Center?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ion of this Agreement shall be deemed to take effect upon termination of the Interim Period. In addition, Franchisee acknowledges that Franchisee is obligated to pay the Interim Period Fee (as defined below) for each month during any Interim Period. The Interim Period Fee will be in addition to all other fees and costs payable by Franchisee pursuant to this Agreement.
4. TERRITORY
- 4.1 Location. Franchisee may operate the franchised Business only at the Premises as designated in Attachment I to this Agreement. Franchisee may not relocate the Premises without Franchisor's prior written approval, which may be withheld for any reason. Franchisee must maintain a physical location for the Center at all times.
- 4.2 Territory. During the term of this Agreement and any extensions, neither Franchisor nor its affiliates will own, operate or franchise a fixed location for the operation of any other Center within your Territory as designated in Attachment I to this Agreement. Franchisee will also have the right to service any persons in the Territory, regardless of the method of sales, subject to Franchisor's express reservation of rights set forth in Section 4.5. Once established, the boundaries of Franchisee's Territory will not be adjusted by Franchisee without Franchisor's written consent regardless of whether the population of Franchisee's Territory increases or decreases over time. Notwithstanding the foregoing, Franchisee acknowledges that prior to the term of this Agreement, Franchisor or its affiliate may have licensed to a third-party the right to use the System and/or Marks to operate a business that may be similar to the LearningRx Center operated by Franchisee under this Agreement pursuant to a PACE license or a Clinical license in a portion of Franchisee's Territory. The pre-existing PACE licensee and/or Clinical licensee has the right to continue to operate the business per the PACE license and/or Clinical license in the portion of Franchisee's Territory and such ongoing use will not constitute a breach of this Agreement, including this Section 4.02 or an Area Developer Agreement, if any.
- 4.3 Soliciting Outside the Territory. Subject to the requirements of Sections 9.1 and 9.2, Franchisee may not, without the express written permission of Franchisor, place advertising targeted primarily to another territory unless the advertising is done as part of a cooperative effort with the Franchisee in the targeted territory
- 4.4 Minimum Annual Revenue Quota. In order to maintain the Territory, Franchisee must maintain a Minimum Annual Revenue Quota ("Minimum Annual Revenue Quota"), starting six (6) months after opening in the amount of Fifty thousand and 00/100 Dollars ($50,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the first twelve (12) months, Seventy-Five thousand and 00/100 Dollars ($75,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for the second (2nd) twelve (12) months and One hundred, thousand and 00/100 Dollars ($100,000.00) for every one hundred, thousand (100,000) people (or pro-rated portion of one hundred, thousand (100,000)) in the Territory for any twelve (12) month period thereafter in the Territory.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee is granted the right to operate a Learningrx Training Center at a specific location designated in Attachment I of the Franchise Agreement. This right is for the duration of the agreement, including any extensions. The franchisee's territory is defined in Attachment I, and Learningrx agrees not to operate or franchise another fixed-location Center within that territory. Franchisees also have the right to service anyone within their territory, regardless of the sales method, although Learningrx retains specific rights as detailed in Section 4.5 of the agreement.
However, this right is subject to certain limitations. The franchisee must maintain a physical location for the Center at all times and cannot relocate without Learningrx's prior written approval. Additionally, Learningrx retains several rights, including the right to operate or franchise Learningrx Centers outside the franchisee's territory, even if they are nearby. The franchisee's territory boundaries cannot be adjusted without Learningrx's consent, irrespective of population changes. Pre-existing PACE or Clinical licensees may also operate within the franchisee's territory under certain conditions, without constituting a breach of the agreement.
Furthermore, to maintain the territory, a Learningrx franchisee must meet a Minimum Annual Revenue Quota, which increases over time. Starting six months after opening, the quota is initially $50,000 for every 100,000 people in the territory, increasing to $75,000 in the second year, and $100,000 thereafter. Failure to meet this quota may result in the loss of exclusivity, reduction of the territory, or termination of the agreement, at Learningrx's discretion. These conditions highlight the importance of location, performance, and adherence to the franchise agreement to maintain the granted rights.