Under what condition must a Learningrx franchisee shut down its Satellite Location?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Learningrx's 2025 Franchise Disclosure Document, a franchisee must shut down their Satellite Location if Learningrx licenses the right to own and operate a Learningrx Center to another franchisee and grants that franchisee a territory that encompasses the original franchisee's site. The shutdown must occur on or before the date the new franchisee opens their Learningrx Training Center.
Furthermore, the original franchisee is obligated to transfer all of their customers to the new franchisee by the time the new Learningrx Training Center is ready to open. This event is termed a "Satellite Transition" within the addendum.
It is important to note that the franchisee undergoing a Satellite Transition will not receive any compensation and will not be reimbursed for any portion of the Satellite Location Fee. This lack of compensation should be carefully considered by prospective franchisees when deciding to open a satellite location.