Under what conditions can Learningrx terminate the Area Developer Agreement with cause?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Developer Agreement | Summary | |
|---|---|---|---|
| a. | Length of Franchise term | Section 2 | Unless sooner terminated pursuant to the provisions of Section 6, the term of this Agreement shall expire upon the earlier of the number of months described in Schedule A from the Effective Date, or (b) completion of the term of the Development Schedule. |
| b. | Renewal or extension of the term | Section 2 | At the Franchisors discretion and if you are in good standing you can add 1 additional term as described in a renewed Schedule A. |
| c. | Requirements for franchisee to renew or extend | Section 2 | Area Developer has not defaulted in its obligations under this Agreement or any other agreement with Franchisor, and the parties agree in writing to an extension of the Development Schedule |
| d. | Termination by franchisee | Not Applicable | You have no express contractual right unilaterally to terminate the Franchise Agreement for any reason. However, you may terminate under any grounds permitted by state law. |
| e. | Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. | Termination by franchisor with cause | Section 6.01 | We can terminate if you commit any one of several violations. If any individual Franchise Agreement issued to you or any of your affiliates, whether or not issued pursuant to an Area Developer Agreement, is terminated for any reason, we shall have the right to terminate on immediate written notice to you or your affiliate: (i) the Area Developer Agreement, if applicable, and/or (ii) all other Franchise Agreements issued to you and/or your affiliates. |
| g. | "Cause" defined – curable defaults | Not Applicable | Not Applicable |
| h. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Learningrx can terminate the Area Developer Agreement with cause under specific conditions. These conditions are outlined in Section 6.01 of the Area Developer Agreement.
Learningrx has the right to terminate the Area Developer Agreement if the franchisee commits any of several violations. Additionally, if any individual Franchise Agreement issued to the franchisee or their affiliates is terminated for any reason, Learningrx can terminate the Area Developer Agreement and all other Franchise Agreements issued to the franchisee or their affiliates with immediate written notice.
Furthermore, Learningrx can terminate the Area Developer Agreement if the franchisee fails to comply with the Development Schedule, fails to perform any obligations under the Area Developer Agreement or any individual Franchise Agreement, ceases to be a franchisee in good standing, or fails to comply with the provisions on transfer contained in the agreement. These conditions provide Learningrx with specific grounds for terminating the agreement, protecting their interests and maintaining the integrity of the franchise system. Prospective franchisees should carefully review Section 6.01 of the Area Developer Agreement to fully understand these termination conditions and their obligations under the agreement.