For Learningrx, is a Spousal Affiliate prohibited from operating on the Internet within a fifty-mile radius of another LearningRx Training Center after their association with the Franchisee is terminated?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
COVENANTS NOT TO COMPETE
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- This Covenant Not to Compete shall apply:
- a. during the term of Franchisee Affiliate's relationship, association with or employment by Franchisee anywhere within the United States; and,
- b. for the two years following the termination of Franchisee Affiliate's association with or employment by Franchisee:
- i. within Franchisee's Territory or any area serviced by Franchisee;
- ii. within counties adjacent to Franchisee's Territory or within a Territory then operated by or under development by Franchisor or another franchisee of Franchisor;
- iii. within a fifty mile radius from the boundary of Franchisees Territory or from any other franchised or company-owned LearningRx Training Center, or
- iv. on the Internet or on any other Multi-Area Marketing channels used by Franchisor.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, a Spousal Affiliate is restricted from operating on the Internet for two years after the termination of their association with the franchisee. Specifically, the covenant not to compete applies (a) within the Franchisee's Territory; (b) within counties adjacent to the Franchisee's Territory or within a Territory then operated by or under development by Franchisor or another franchisee of Franchisor; (c) within a fifty mile radius from the boundary of Franchisees Territory or from any other franchised or company-owned LearningRx Training Center, (d) on the Internet or (e) on any other Multi-Area Marketing channels used by Franchisor.
This means that a Spousal Affiliate cannot engage in a competitive Learningrx business online, regardless of physical location, for a period of two years after their relationship with the franchisee ends. This restriction is in place to protect Learningrx's market and other franchisees from unfair competition.
The non-compete restrictions acknowledge that the Spousal Affiliate has skills and abilities of a general nature and other opportunities for exploiting such skills, so enforcement of the covenants will not deprive them of their personal goodwill or ability to earn a living. This suggests that Learningrx believes the restrictions are reasonable and do not unduly limit the Spousal Affiliate's ability to work in other fields.
Prospective franchisees should carefully consider these restrictions and discuss them with any Spousal Affiliates involved in the business to ensure everyone understands the limitations and obligations. It is also advisable to seek legal counsel to fully understand the implications of these covenants not to compete.