Under the Learningrx Satellite Addendum, what agreement grants the franchisee the right to operate a center at the premises?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| This LearningRx Satellite Addendum ("Addendum") is entered into this day of , 20 , by and between LearningRx Franchise Corporation, a Colorado corporation ("Franchisor"), and , a ("Franchisee"). |
|---|
| RECITALS |
| WHEREAS, on |
| , 20 |
| the |
| parties |
| entered |
| into |
| a |
| franchise |
| agreement ("Franchise Agreement") pursuant to which Franchisee was granted the right to |
| operate a Center at the Premises, using the System and Marks for the term of the Franchise |
| Agreement; |
| WHEREAS, Franchisee desires to obtain a license to operate an additional location |
| ("Satellite Location") under the Marks and in strict conformance with the System and the |
| specifications listed in Franchisor's Operations Manual, and Franchisor is willing to grant |
| Franchisee such a license to operate a Satellite Location under the terms and conditions of this |
| Addendum; and |
| WHEREAS, all capitalized terms used in this Addendum shall have the meaning as defined |
| in the Franchise Agreement. |
| NOW, the parties agree as follows: |
I. GRANT
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- Grant of License. So long as the Franchise Agreement between Franchisor and Franchisee remains in good standing, Franchisor grants to Franchisee and Franchisee accepts from Franchisor, a non-exclusive right and obligation to use the System and Marks to open and operate one Satellite Location, in accordance with the terms of the Franchise Agreement. The Satellite Location must comply with all specifications set forth in Franchisor's current Operations Manual.
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- Term. The term of this Addendum will begin on the date this Addendum is executed ("Execution Date") and, unless it is terminated earlier according to this Addendum, will expire at midnight on the three hundred, sixty-fifth (365th) day after the Execution Date ("Initial Term").
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- Satellite Location Fee. Upon the signing of this Addendum, Franchisee must pay a Satellite Location fee of Five thousand and 00/100 Dollars ($5,000.00) ("Satellite Location Fee"), if the Satellite Location is outside of the Territory. The Satellite Location Fee is fully earned upon signing this Addendum and is non-refundable under any circumstances. Upon making one annual payment of Five thousand and 00/100 Dollars ($5,000.00) or twelve (12) monthly payments of Four hundred fifty and 00/100 Dollars ($450.00) for a Satellite Location outside of the Territory,
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the LearningRx Satellite Addendum grants the franchisee a non-exclusive right and obligation to use the Learningrx system and marks to open and operate one satellite location. This is contingent upon the franchise agreement between Learningrx and the franchisee remaining in good standing. The satellite location must also comply with all specifications set forth in Learningrx's current operations manual.
The term of the addendum begins on the date the addendum is executed and expires 365 days after the execution date, unless terminated earlier. Upon signing the addendum, the franchisee must pay a satellite location fee of $5,000 if the satellite location is outside of the territory. If the satellite location is within the territory, a reduced satellite location fee of $2,400 is due only if the franchisee wishes to have the satellite location listed on the Learningrx website.
It is important to note that Learningrx is under no obligation to renew the addendum after the initial term, and the franchisee does not have any right to unilaterally renew it. Learningrx may elect to grant the franchisee the right to extend the addendum for additional 365-day periods, each a Successor Term, after the expiration of the current term. If the franchisee exercises its right to a Successor Term, it must pay Learningrx an additional satellite location fee before the first day of that Successor Term.