What are the three options Learningrx franchisees have regarding contracted training services by the expiration of the Notice Period?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, Franchisee acknowledges and agrees that Franchisee's right to exercise the Early Termination Option and to have Franchisor waive the Lost Profits Damages are expressly conditioned upon Franchisee's strict compliance with the following requirements:
- (a) Franchisee must comply with all obligations herein that by their terms survive termination, including those pertaining to non-competition, confidentiality, and indemnity, and the obligations set forth in this Agreement at Section 13.2(a)-(g);
- (b) By the expiration of the Notice Period, Franchisee must either: (1) deliver all contracted training services; (2) provide prorated refunds for all undelivered services (along with evidence of such refunds prior to the termination date) to all clients under contract; or (3) make arrangements with all clients under contract to complete all contracted training services;
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a franchisee who exercises the Early Termination Option must meet specific requirements to have Learningrx waive Lost Profits Damages. One of these conditions involves contracted training services.
By the expiration of the Notice Period, the Learningrx franchisee has three options regarding these services. First, the franchisee can deliver all contracted training services. Second, they can provide prorated refunds for all undelivered services to all clients under contract, including evidence of such refunds before the termination date. Third, the franchisee can make arrangements with all clients under contract to complete all contracted training services.
These conditions ensure that clients are not left without the services they paid for, or without proper compensation, in the event of an early termination. This protects the Learningrx brand's reputation and minimizes potential harm to customers.
It is important for a prospective Learningrx franchisee to understand these obligations, as failure to comply with them could result in Learningrx not waiving the Lost Profits Damages, potentially leading to significant financial repercussions.