Are there any exceptions to the requirement that a Learningrx franchisee or manager cannot have a business relationship with a competitor?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
which such information or material may have been furnished to Franchisee Affiliate.
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- Franchisee Affiliate shall not at any time, directly or indirectly, do any act that would or would likely be injurious or prejudicial to the goodwill associated with the Licensed Marks, the Trade Secrets or the System.
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- All Operations Manuals are loaned by Franchisor to Franchisee for limited purposes only and remain the property of Franchisor and may not be reproduced, in whole or in part, without Franchisor's written consent.
COVENANTS NOT TO COMPETE
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- In order to protect the goodwill and unique qualities of the System and the confidentiality and value of the Trade Secrets, and in consideration for the disclosure to Franchisee Affiliate of the Trade Secrets, Franchisee Affiliate further agrees and covenants that Franchisee Affiliate will not without the prior written consent of Franchisor:
- a. Have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, except with Franchisor's approval;
- b.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, both the franchisee and their onsite manager are prohibited from having any business relationship with Learningrx's competitors. However, Learningrx may provide written consent allowing a franchisee affiliate or spousal affiliate to have a direct or indirect interest in a competitive business. This consent would be at the discretion of Learningrx.
This non-compete agreement extends not only to the franchisee and manager but also to anyone associated with the franchisee, including officers, directors, shareholders, partners, members, trustees, employees, agents, and immediate family members. This broad scope ensures that all parties with a vested interest in the Learningrx franchise are committed to avoiding conflicts of interest and protecting Learningrx's business interests.
The term "Competitive Business" is defined as any business offering or granting franchises or licenses to others to provide learning enhancement courses, programs or products; brain training or cognitive training courses, programs or products; or math and reading training courses, programs, or products. This definition is important for prospective franchisees to understand, as it clarifies the types of businesses that would be considered a conflict of interest. Franchisees should seek clarification from Learningrx if they are unsure whether a particular business activity would violate the non-compete agreement.