Under what circumstances does the Learningrx addendum automatically terminate?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Term. The term of this Addendum will begin on the date this Addendum is executed ("Execution Date") and, unless it is terminated earlier according to this Addendum, will expire at midnight on the three hundred, sixty-fifth (365th) day after the Execution Date ("Initial Term").
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- Satellite Transition. Franchisee agrees that if Franchisor licenses the right to own and operate a LearningRx Center to another franchisee, and grants to that franchisee a territory that encompasses Franchisee's Site, Franchisee must shut down its Satellite Location on or before
the date that the new franchisee opens its LearningRx Training Center. Further, Franchisee must transfer all of Franchisee's customers to the new franchisee on or before the new franchisee is prepared to open its LearningRx Training Center. Together, these events will be referred to in the Addendum as Franchisee's "Satellite Transition." Franchisee will have no right to compensation in the event of a Satellite Transition and will have no right to be reimbursed any portion of the Satellite Location Fee.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the Learningrx Satellite Addendum can terminate under specific circumstances. The addendum has an initial term that expires 365 days after the execution date, unless terminated earlier according to the addendum. Additionally, if Learningrx licenses the right to own and operate a Learningrx Center to another franchisee and grants that franchisee a territory that includes the Satellite Location's site, the franchisee operating the satellite location must shut it down by the date the new franchisee opens their Learningrx Training Center. This is referred to as a 'Satellite Transition'.
In the event of a Satellite Transition, the franchisee must also transfer all customers to the new franchisee by the time the new franchisee is ready to open their Learningrx Training Center. The franchisee will not receive any compensation or reimbursement of any portion of the Satellite Location Fee in the event of a Satellite Transition.
It is important to note that Learningrx is under no obligation to renew the addendum after the initial term, and the franchisee does not have the right to unilaterally renew it. Learningrx may choose to grant the franchisee the right to extend the addendum for additional 365-day periods, each considered a 'Successor Term,' but this is not guaranteed. If the franchisee does exercise their right to a Successor Term, they must pay an additional Satellite Location Fee before the first day of that Successor Term.