After termination or expiration of a Learningrx franchise, for how long 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 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 restrict involvement in competing businesses. For a franchisee, the non-compete period is two years. During this time, the franchisee is prohibited from 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 activities or other multi-area marketing channels.
Similarly, an area developer faces a two-year non-competition covenant following termination or expiration. This prevents them from engaging in competing businesses within their development territory, adjacent counties, or within 50 miles of their development territory. The restriction also extends to any other Learningrx area developer or Learningrx training center. Like franchisees, area developers are also restricted from involvement in competing businesses on the internet or other multi-area marketing channels.
These non-competition agreements 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 covenants in their state. The choice of forum for disputes, including those related to non-compete clauses, is Colorado, and Colorado law applies, subject to state law.