Under what conditions might the Learningrx Area Developer Agreement be terminated before the end of the initial term?

ected by the Area Developer, within the Development Territory, subject to Franchisor's prior approval as set forth in this Section 5, which approval shall take into account all relevant demographic information then available to Franchisor. The establishment of any proposed site by Area Developer prior to approval of Franchisor shall be the sole risk and responsibility of Area Developer and shall not obligate Franchisor in any way to approve the same. The approval of a proposed site by Franchisor does not in any way constitute a warranty or representation by Franchisor as to the suitability of such site for location of a Center.

6. DEFAULT & TERMINATION

• 6.01. Conditions for Default. Area Developer shall be in default under this Agreement should Area Developer:
  • A. fail to comply with the Development Schedule;
• B. fail to perform any of its obligations under this Agreement or any individual franchise agreement;
  • C. cease to be a franchisee of Franchisor in good standing; or
  • D. fail to comply with the provisions on transfer contained in this Agreement.
• 6.02. Termination Rights. Upon such default, Franchisor shall have the right, at its option, and in its sole discretion, to do any or all of the following:
  • A. terminate this Agreement;
  • B. terminate the territorial exclusivity granted to Area Developer;

• C. reduce the size of the Area Developer's Development Territory or the number of Centers Area Developer may develop in the Development Territory; or
  • D. accelerate the Development Schedule on immediate written notice.

In addition, if any individual franchise agreement issued to Area Developer, whether or not issued pursuant to this Agreement, is terminated for any reason, Franchisor shall have the right to terminate this Agreement on immediate written notice to Area Developer.

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