After termination, within what geographic areas is a former Learningrx franchisee affiliate prohibited from competing?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Agreement, this Covenant Not to Compete applies anywhere in the United States. For two (2) years after the termination, transfer, or expiration of this Agreement, for any reason, this Covenant Not to Compete applies: (a) within Franchisee's Territory; (b) within counties adjacent to Franchisee's Territory or within a Territory then operated by or under development by Franchisor or another franchisee of Franchisor; (c) within a fifty mile radius from the boundary of Franchisees Territory or from any other franchised or company-owned LearningRx Training Center, (d) on the Internet or (e) 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 the 2025 Learningrx Franchise Disclosure Document, both during the term of the agreement and for two years after termination, transfer, or expiration, a franchisee and their affiliates are restricted from engaging in competitive business activities. During the agreement, this restriction applies throughout the United States.
Post-termination, the non-compete applies for two years in the following areas: (a) within the franchisee's territory, (b) in counties adjacent to the franchisee's territory or within a territory operated by Learningrx or another franchisee, (c) within a 50-mile radius from the boundary of the franchisee's territory or any other Learningrx center, (d) on the Internet, and (e) on any other multi-area marketing channels used by Learningrx.
These restrictions aim to protect Learningrx's goodwill, trade secrets, and customer relationships. The term "Competitive Business" includes businesses offering learning enhancement, brain training, or math and reading training courses, programs, or products. These covenants are designed to prevent former franchisees from using confidential information and established relationships gained during their franchise term to unfairly compete with Learningrx or its other franchisees. Spousal Affiliates are also subject to similar restrictions during their association with the franchisee and for two years post-termination.