factual

Under what condition will Learningrx not enter into any new PACE license?

Learningrx Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor and Franchisee agree that Franchisor will not enter into any new PACE license for a location that is closer than fifteen (15) miles from the front door of Franchisee's Center and Franchisee acknowledges that Franchisor has the right to enter into Clinical licenses anywhere outside of Territory.

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

What This Means (2025 FDD)

According to Learningrx's 2025 Franchise Disclosure Document, Learningrx will not enter into any new PACE license for a location that is closer than fifteen (15) miles from the front door of a franchisee's Learningrx center. However, Learningrx retains the right to enter into Clinical licenses anywhere outside of the franchisee's territory.

This policy protects franchisees by preventing Learningrx from licensing new PACE locations that could directly compete with an existing franchisee's center. The 15-mile radius provides a buffer zone, ensuring that new PACE licensees do not encroach on the established customer base of existing Learningrx centers. This condition is designed to maintain the territorial integrity and revenue potential for franchisees.

However, franchisees should be aware that this protection is limited to PACE licenses. Learningrx explicitly reserves the right to grant Clinical licenses outside the franchisee's territory, which could potentially introduce competition in a broader geographic area. Franchisees should carefully consider the implications of this clause and assess the potential impact of Clinical licensees on their business. It is important to note that pre-existing PACE licensees and Clinical licensees are allowed to continue to operate per their original agreements, even within the franchisee's territory.

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.