Does the termination of the Learningrx franchise agreement affect any claims, rights, causes of action, or remedies that Learningrx may have against the franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
not taken all steps necessary to amend or terminate any registration or filing of any fictitious name or any other registration or filing containing the Marks, Franchisee hereby irrevocably appoints Franchisor as Franchisee's true and lawful attorney for Franchisee, for the purpose of amending or terminating all registrations and filings, this appointment being coupled with an interest to enable Franchisor to protect the System.
- 13.4 Other Claims. Termination of this Agreement will not affect, modify or discharge any claims, rights, causes of action or remedies, which Franchisor may have against Franchisee, whether such claims or rights arise before or after termination.
- 13.5 Other Remedies. In the case of any uncured default, Franchisor may elect, in Franchisor's sole discretion, to not terminate this Agreement but instead to impose fines or other penalties as are more fully set forth in the Operations Manual.
- 13.6 Early Termination Option.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the termination of the franchise agreement does not impact any claims, rights, causes of action, or remedies that Learningrx may have against the franchisee. This applies whether these claims or rights arise before or after the termination.
Learningrx retains the right to pursue the franchisee for damages, even if the franchisee exercises the Early Termination Option. These damages include monies owed before termination, damages from customer conversion, trademark or reputational damages, and damages from failure to provide paid services or refunds. The only exception is that Learningrx agrees to waive its right to seek lost future profits, lost future royalty fees, and lost future marketing/advertising fees (collectively referred to as "Lost Profits Damages") if the franchisee terminates early under specific conditions.
This means that even after a Learningrx franchise agreement ends, the franchisee may still be liable for outstanding debts or damages resulting from their actions. However, if the franchisee terminates early according to the agreement's terms, they will not be responsible for Learningrx's projected future earnings. Prospective franchisees should carefully consider these potential liabilities and the conditions under which they might be responsible for various types of damages even after the franchise terminates.