Under what condition will Learningrx not operate or grant franchises for similar businesses within a franchisee's Territory?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
ise Agreement, Section 5). The table of contents is attached as Exhibit F.
ITEM 12 TERRITORY
We will grant to you a territory ("Territory") defined by population size. A Micro Franchise has a population of less than 100,000; and a Standard Franchise has a population of 100,000 to 200,000 people, as determined by us. Your Territory may be delineated by boundary streets, highways, counties, or zip codes. We will not operate through our current trademarks, any permanent LearningRx Centers or grant franchises for a similar or competitive business within your Territory as long as you meet minimum revenue requirements, but we have the right to do so anywhere outside your Territory at any time. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also have preexisting PACE Licensees and Clinical Licensees offering educational services under different trademarks and trade names operating in your Territory. You will operate from 1 location approved by us and must receive our permission before relocating. We will grant approval to relocate if you are in compliance with the Franchise Agreement, you have paid all money owed to us and/or our affiliates, and the proposed location meets our site selection criteria as specified in the Operations Manual.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx will not operate or grant franchises for similar businesses within a franchisee's territory as long as the franchisee meets minimum revenue requirements. The document specifies that Learningrx grants a territory defined by population size, with a Micro Franchise covering less than 100,000 people and a Standard Franchise covering 100,000 to 200,000 people. The territory may be delineated by boundary streets, highways, counties, or zip codes. However, Learningrx retains the right to operate outside the franchisee's territory at any time. Franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Learningrx.
To maintain the territory and license, a Learningrx franchisee must meet annual minimum Gross Revenues, starting six months after opening their center. The Minimum Revenue Quota is $50,000.00 for every 100,000 people in the territory for the first 12 months, $75,000.00 for every 100,000 people in the territory for the second 12 months, and $100,000.00 for every 100,000 people in the territory for any subsequent 12-month period. Failure to meet this quota may result in the loss of territory exclusivity, allowing Learningrx to offer a center location to an additional franchisee within the original franchisee's designated territory.
It is important to note that Learningrx reserves several rights, including the right to use the Marks and the System to sell similar services through alternate channels of distribution within or outside the Territory, such as retail locations, stores, kiosks, malls, airports, special events, television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet. Learningrx also reserves the right to use and license other proprietary and non-proprietary marks or methods, even within the franchisee's territory, as long as they are not confusingly similar to the Marks. Additionally, Learningrx can purchase or merge with any business, including competitors, regardless of location. These reservations highlight that while Learningrx grants a territory, it retains significant control over its brand and distribution methods, which could impact a franchisee's business.