What state's law applies to the Learningrx Area Developer Agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ust be in the State of Colorado. (Subject to State law)* | | w. Choice of law | Section 16.06 | Colorado law applies. (Subject to State law)* |
| Provision | Section in Area Developer Agreement | Summary |
|---|---|---|
| k. “Transfer” by franchisee - | Section 7.02 | Includes transfer of contract or assets or |
| defined | ownership change. | |
| l. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Area Developer Agreement is generally governed by Colorado law. However, this is subject to applicable state law, meaning that certain provisions may be superseded or modified based on the specific state where the Area Developer operates. This is a common practice in franchising, as state laws often regulate aspects of the franchise relationship to protect franchisees.
Specifically, the FDD indicates that the choice of forum for mediation, arbitration, and legal actions related to injunctive relief, claims based on Learningrx's Marks, or covenants not to compete must be in the State of Colorado, but this is also subject to state law. This means that while Learningrx prefers disputes to be resolved in Colorado, a franchisee's state law might dictate a different venue or process.
Prospective Learningrx Area Developers should be aware that the interplay between Colorado law and their own state's laws could affect their rights and obligations under the Area Developer Agreement. It is important to consult with a legal professional to understand how local laws might impact the agreement and to ensure compliance with all applicable regulations. This is especially crucial regarding non-competition covenants, as these are often scrutinized and regulated at the state level.