During the term of the Learningrx franchise, what are the geographic limitations on non-competition?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of franchise | Section 15.01 | Except as restricted by applicable state law, no involvement in competing business anywhere in U.S. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, franchisees are subject to non-competition covenants during the term of the franchise agreement. Specifically, franchisees are prohibited from involvement in any competing business anywhere in the United States, except as restricted by applicable state law. This means that while operating a Learningrx franchise, a franchisee cannot own, operate, or be involved with any other business that offers similar cognitive training or learning services within the U.S.
This non-compete clause is quite broad, covering the entire United States. Prospective franchisees should be aware of this restriction, as it significantly limits their ability to engage in other business ventures, even those seemingly unrelated to cognitive training. The clause is subject to applicable state laws, which may provide some limitations or exceptions depending on the specific jurisdiction. Franchisees should consult with legal counsel to understand how state laws might affect the enforceability of this non-compete provision in their particular location.
The Learningrx FDD also outlines non-competition covenants that apply after the franchise is terminated or expires. These post-term restrictions are more geographically limited, focusing on the franchisee's territory, adjacent counties, and a 50-mile radius. However, the during-term restriction is nationwide, making it a critical consideration for anyone considering investing in a Learningrx franchise.