When transferring a Learningrx franchise, what costs is the franchisee required to reimburse the franchisor for?

According to the 2025 Learningrx Franchise Disclosure Document, a franchisee transferring their business must reimburse Learningrx for reasonable external legal and administrative costs incurred during the transfer. These costs are specifically defined as those that are not in-house.

In addition to reimbursing legal and administrative costs, the franchisee must also ensure several other conditions are met. These include settling all outstanding accounts with Learningrx, securing a general release from all claims, and ensuring the business is not in material default under any agreements. The franchisee must also have paid all royalties, marketing development fund fees, and other amounts owed to Learningrx or its affiliates.

Furthermore, the franchisee must provide Learningrx with the material terms and conditions of the transfer, including payment terms and proposed post-transfer ownership. Learningrx must approve these terms, and the price and terms of payment must not adversely impact the transferee's operation of the business. The franchisee and any transferring owners must also execute an agreement to remain bound by obligations that survive termination, such as those pertaining to non-competition, confidentiality, and indemnity. The new owners must sign a Guaranty and Assumption of Obligations, and the franchise agreement must be amended to reflect the post-transfer ownership.