During the term of a Spousal Affiliate's relationship with a Learningrx franchisee, where does the Covenant Not to Compete apply?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This Covenant Not to Compete shall apply:
- a. during the term of Spousal Affiliate's relationship, association with or employment by Franchisee anywhere within the United States; and,
- b. for the two years following the termination of Spousal 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 Learningrx's 2025 Franchise Disclosure Document, the Covenant Not to Compete for a Spousal Affiliate is in effect during the term of the Spousal Affiliate's relationship, association, or employment with the Learningrx franchisee. During this time, the non-compete applies anywhere within the United States. This means that while the spousal affiliate is associated with the franchisee, they cannot engage in competitive business activities anywhere in the country.
This restriction is designed to protect Learningrx's trade secrets, goodwill, and the unique qualities of its system. The FDD specifies that the Spousal Affiliate acknowledges that receiving and using Learningrx's trade secrets constitutes valuable consideration for agreeing to these restrictions. This is a standard practice in franchising to prevent individuals with knowledge of the franchisor's business practices from using that knowledge to compete against the franchise system.
It is important for prospective Learningrx franchisees and their spousal affiliates to understand the scope of this non-compete agreement. The agreement restricts the spousal affiliate's business activities during their association with the franchisee and for a period of two years after termination or separation. The restrictions extend to owning, operating, or working for a competitive business, as well as diverting business or customers from Learningrx. Franchisees should carefully review these terms with their legal counsel to fully understand the implications and ensure compliance.