factual

What is the timeframe Learningrx gives a franchisee to cure a defect after receiving a termination notice?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

This Agreement will terminate thirty (30) days after Franchisor gives written notice to Franchisee and Franchisee fails to cure the defect within the thirty (30) day period, in the event that:

  • (i) Franchisee fails or refuses to maintain and operate the Business in compliance with this Agreement, the System, or the Operations Manual;

  • (ii) Franchisee fails to pay Franchisor or its affiliates or suppliers for obligations under this Agreement;

  • (iii) Franchisee fails to comply with any material federal, state, or local law or regulation applicable to the operation of the Business;

  • (iv) Franchisee fails to open the Business within nine (9) months from the Effective Date of this Agreement; or

  • (v) Franchisee is in breach of any other term, condition, or provision of this Agreement.

Source: Item 23 — RECEIPT (FDD pages 54–209)

What This Means (2025 FDD)

According to the 2025 Learningrx Franchise Disclosure Document, Learningrx typically provides a franchisee 30 days to correct a breach of the franchise agreement after receiving written notice. Specifically, if a franchisee fails to maintain and operate the business in compliance with the agreement, the Learningrx system, or the operations manual, they have 30 days to fix the issue. This 30-day cure period also applies if the franchisee fails to pay Learningrx, its affiliates, or suppliers for obligations under the agreement, fails to comply with any material federal, state, or local law, fails to open the business within nine months, or breaches any other term of the agreement.

However, Learningrx can terminate the franchise agreement immediately without notice under certain circumstances. These include misrepresentation or omission of material facts that induced Learningrx to enter into the agreement, failure to complete the required initial training, failure to designate an acceptable site, or failure to obtain required licenses or hire licensed professionals within six months of signing the agreement.

It's important to note that these termination clauses may be subject to state laws that provide different notice and cure periods. For example, the FDD states that in Minnesota, franchisees are typically given 90 days' notice of termination with 60 days to cure, and 180 days' notice for non-renewal, except in certain specific cases. Therefore, prospective franchisees should be aware of both the Learningrx franchise agreement terms and any applicable state laws regarding termination and cure periods.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.