During the term of the Learningrx franchise, where is involvement in a competing business prohibited?

According to Learningrx's 2025 Franchise Disclosure Document, franchisees are restricted from involvement in any competing business within the United States during the term of the franchise agreement. Specifically, Item 17 outlines non-competition covenants during the franchise term, stating that franchisees cannot be involved in a competing business anywhere in the U.S., except as restricted by applicable state law. This restriction is found in Section 15.01 of the Franchise Agreement. A similar restriction applies to Area Developer Agreements, as detailed in Section 9.01.

This non-compete clause means that while operating a Learningrx franchise, a franchisee cannot own, operate, or be involved in any other business that offers similar cognitive training or learning services anywhere in the United States. This is a significant restriction that could impact a franchisee's ability to pursue other business ventures simultaneously. The FDD also notes that these non-competition covenants are subject to applicable state laws, which may modify or limit the enforceability of these restrictions.

After the franchise agreement terminates or expires, the non-compete restrictions change. The franchisee is then restricted for two years from involvement in a competing business within their Territory, adjacent counties, 50 miles from their Territory or another LearningRx franchisee, or through internet or other Multi-Area marketing channels. This post-term restriction is more limited geographically than the restriction during the franchise term.

Prospective franchisees should carefully review these non-compete clauses with legal counsel to understand the full scope of these restrictions and how they may be affected by state law. Understanding these limitations is crucial for planning future business activities and ensuring compliance with the franchise agreement.