After termination or expiration of a Learningrx franchise, what are the geographic limitations on non-competition?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 15.01 | Except as restricted by applicable state law, no involvement in competing business for 2 years within Territory, within adjacent counties, 50 miles from Territory or another LearningRx franchisee, on the internet or other Multi-Area marketing channels |
| Provision | Section in Area Developer Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | Section 9.02 | Except as restricted by applicable state law, no involvement in competing business for 2 years within Development Territory, within adjacent counties, 50 miles from Development Territory or another LearningRx Area Developer or LearningRx Training Center, on the internet or other Multi-Area marketing channels |
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, both franchisees and area developers are subject to non-competition covenants after the termination or expiration of their agreements. These covenants, however, are subject to applicable state laws, which may restrict their enforceability or scope.
For a franchisee, the non-competition covenant restricts involvement in any competing business for a period of two years after termination or expiration. This restriction applies within the franchisee's territory, in adjacent counties, within 50 miles of the territory, or in relation to another Learningrx franchisee. It also extends to online activities or other multi-area marketing channels.
Similarly, for an area developer, the non-competition covenant also lasts for two years post-termination or expiration. It prohibits involvement in competing businesses within the development territory, adjacent counties, within 50 miles of the development territory, or in relation to another Learningrx area developer or Learningrx training center. This covenant also includes restrictions on internet or other multi-area marketing channels. Therefore, a prospective Learningrx franchisee or area developer should carefully consider these restrictions and how they might impact their future business opportunities after leaving the Learningrx system.