Under what circumstances can the Learningrx Area Developer disclose the terms of the Area Developer Agreement without the Franchisor's prior written consent?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
8.02. Disclosure. The Area Developer agrees that all terms of this Agreement shall remain confidential and shall not make any public announcement, issue any press release or publicity, make any confirmation of statements made by third parties concerning the terms of this Agreement, or make any other disclosures other than the existence of this Agreement without the prior written consent of Franchisor unless compelled by law or ordered to do so by a court of competent jurisdiction. It is agreed and understood that Area Developer may disclose the terms of this Agreement to its professional advisors and lenders. Franchisor shall be free to make such disclosure of the terms of this Agreement as it determines, in its sole discretion, to be in the best interest of Franchisor or the System.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the Area Developer is bound by confidentiality regarding the terms of the Area Developer Agreement. Generally, the Area Developer cannot make public announcements, issue press releases, confirm statements by third parties, or make other disclosures about the agreement's terms without Learningrx's prior written consent.
However, there are specific exceptions to this confidentiality obligation. The Area Developer may disclose the terms of the Area Developer Agreement without Learningrx's prior written consent if compelled by law or ordered to do so by a court of competent jurisdiction. Additionally, the Area Developer is permitted to disclose the terms to its professional advisors and lenders.
Learningrx retains the right to disclose the terms of the Area Developer Agreement as it deems necessary, at its sole discretion, if it believes it is in the best interest of Learningrx or the Learningrx system. This clause highlights the franchisor's control over information dissemination and the franchisee's limited ability to proactively share details of the agreement, except under specific circumstances.