factual

During the term of a Franchisee Affiliate's relationship with a Learningrx franchisee, where does the Covenant Not to Compete apply?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

During the term of this Agreement, this Covenant Not to Compete applies anywhere in the United States.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, the Covenant Not to Compete for Franchisee Affiliates applies throughout the United States during the term of their association with a Learningrx franchisee. This means that while a Franchisee Affiliate is connected to a Learningrx franchise, they cannot engage in any competitive business activities anywhere in the country.

The FDD defines a "Competitive Business" as any business offering or granting franchises or licenses to others to provide learning enhancement courses, programs or products; brain training or cognitive training courses, programs or products; or math and reading training courses, programs, or products. This definition is important because it clarifies the scope of activities that are restricted under the covenant. A Franchisee Affiliate is barred from being involved, directly or indirectly, with such businesses without Learningrx's prior written consent.

This restriction is designed to protect Learningrx's trade secrets, system goodwill, and market position. By agreeing to this covenant, the Franchisee Affiliate acknowledges the value of the confidential information they will receive and the potential harm that could result from unfair competition. This non-compete agreement ensures that individuals associated with a Learningrx franchise remain committed to the brand and do not use their knowledge to benefit rival businesses during their affiliation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.