Under what conditions can pre-existing PACE Licensees and Clinical Licensees operate within my Learningrx territory?

According to Learningrx's 2025 Franchise Disclosure Document, pre-existing PACE Licensees and Clinical Licensees may continue to operate within a franchisee's territory under specific conditions. Learningrx reserves the right to permit these licensees to operate within a franchisee's territory if their zip codes are included in that territory. Additionally, these licensees can operate outside the franchisee's territory, regardless of how close they are to it, while still using Learningrx's trademarks. This means a Learningrx franchisee may face competition from these pre-existing licensees even within their designated area.

This situation highlights the non-exclusive nature of the territory granted to Learningrx franchisees. While Learningrx agrees not to establish or franchise additional Learningrx Centers within the territory as long as the franchisee meets minimum revenue requirements, the presence of pre-existing licensees introduces a competitive element. A prospective franchisee should be aware that these licensees operate under the Learningrx marks and offer similar educational services, potentially impacting the franchisee's market share and revenue.

It is important for potential Learningrx franchisees to understand the extent of any pre-existing PACE Licensees and Clinical Licensees in their target territory before signing the Franchise Agreement. Investigating the location and market penetration of these existing operators will provide a clearer picture of the competitive landscape. Franchisees should also inquire about the services offered by these licensees and how Learningrx differentiates its franchise offering to maintain a competitive edge. Understanding these factors is crucial for developing a successful business strategy and meeting the Minimum Revenue Quota required to maintain territory exclusivity.