After termination or expiration of a Learningrx franchise, where is involvement in a competing business prohibited?
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 the 2025 Learningrx Franchise Disclosure Document, both franchisees and area developers are subject to non-compete clauses after the termination or expiration of their agreements. For a franchisee, the non-compete lasts for two years and restricts involvement in a competing business within their Territory, adjacent counties, or within 50 miles of their Territory or another Learningrx franchisee. This restriction also applies to online or multi-area marketing channels.
Similarly, for an area developer, the non-compete clause also lasts for two years and prohibits involvement in a competing business within their Development Territory, adjacent counties, or within 50 miles of their Development Territory. This also includes restrictions within 50 miles of another Learningrx Area Developer or Learningrx Training Center. Like franchisees, area developers are also restricted from involvement in competing businesses through the internet or other multi-area marketing channels.
It is important to note that these non-competition covenants are subject to applicable state laws, which may modify or restrict their enforceability. Prospective franchisees and area developers should carefully review Section 15.01 of the Franchise Agreement and Section 9.02 of the Area Developer Agreement, respectively, along with Exhibit E, and consult with legal counsel to understand the specific scope and limitations of these non-compete provisions in their state.