Under what conditions is a Spousal Affiliate permitted to use Learningrx Trade Secrets?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisee has agreed to obtain from those Spousal Affiliates written agreements protecting the Trade Secrets and the System against unfair competition; and,
WHEREAS, Spousal Affiliate is by definition associated with Franchisee and will become privileged as to certain Confidential Information; and,
WHEREAS, Spousal Affiliate desires and needs to receive and use the Trade Secrets in the course of his or her relationship with one or more owners of Franchise; and,
WHEREAS, Spousal Affiliate acknowledges that receipt of and the right to use the Trade Secrets constitutes independent valuable consideration for the representations, promises and covenants made by Spousal Affiliate herein;
NOW THEREFORE, in consideration of the mutual covenant and obligations contained herein, the receipt and sufficiency of which are acknowledged, the parties agree as follows:
CONFIDENTIALITY AGREEMENT
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- Franchisor and/or Franchisee may disclose to Spousal Affiliate some or all of the Trade Secrets relating to the System. All information and materials, including, without limitation, Operations Manuals, drawings, marketing techniques, specifications, techniques and compilations of data that Franchisor provides to Franchisee and/or Spousal Affiliate shall be deemed confidential Trade Secrets for the purposes of this Agreement.
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- Spousal Affiliate shall receive the Trade Secrets in confidence and shall, at all times, maintain them in confidence, and use them only in the course of his or her employment or association with a Franchisee and then only in connection with the development and/or operation by Franchisee of a LearningRx Business for so long as Franchisee is licensed by Franchisor to use the System.
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- Spousal Affiliate shall not at any time make copies of any documents or compilations containing some or all of the Trade Secrets without Franchisor's express written permission.
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- Spousal Affiliate shall not at any time disclose or permit the disclosure of the Trade Secrets except to other employees of Franchisee and only to the limited extent necessary to train or assist other employees of Franchisee in the development or operation of a LearningRx Business.
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- Spousal Affiliate shall surrender any material containing some or all of the Trade Secrets to Franchisee or Franchisor, upon request, or upon termination of employment by Franchisee,
or upon conclusion of the use for which such information or material may have been furnished to Spousal Affiliate.
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- Spousal Affiliate shall not at any time, directly or indirectly, do any act that would or would likely be injurious or prejudicial to the goodwill associated with the Licensed Marks, the Trade Secrets or the System.
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- All Operations Manuals are loaned by Franchisor to Franchisee for limited purposes only and remain the property of Franchisor and may not be reproduced, in whole or in part, without Franchisor's written consent.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a Spousal Affiliate can use Learningrx's trade secrets under specific conditions outlined in a confidentiality agreement. The Spousal Affiliate must receive the trade secrets in confidence and maintain that confidentiality at all times. Their use of the trade secrets is explicitly limited to their employment or association with a Learningrx franchisee and must be directly connected to the development or operation of a Learningrx business. This permission is contingent upon the franchisee being licensed by Learningrx to use the Learningrx system.
The agreement strictly prohibits the Spousal Affiliate from making unauthorized copies of any documents containing the trade secrets without Learningrx's express written permission. Furthermore, they cannot disclose the trade secrets to anyone except other employees of the Learningrx franchisee, and even then, disclosure is limited to what is necessary for training or assisting those employees in the Learningrx business's development or operation. Upon request, or if their employment with the franchisee ends, the Spousal Affiliate must return all materials containing the trade secrets to either the franchisee or Learningrx.
Additionally, the Spousal Affiliate is prohibited from taking any actions that could harm the goodwill associated with Learningrx's licensed marks, trade secrets, or the Learningrx system. The operations manuals remain the property of Learningrx and are loaned to the franchisee for limited purposes only, with reproduction strictly forbidden without Learningrx's written consent. These measures collectively ensure that Learningrx's proprietary information is protected and used only to benefit the Learningrx system under controlled circumstances.