Upon whom is the Learningrx agreement binding?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
the years | ended September | 30, 2023 | and 2022, respectively. | Deferred |
ATTACHMENT VIII(b) to FRANCHISE AGREEMENT
SPOUSAL AND DOMESTIC PARTNER CONFIDENTIALITY and COVENANT NOT TO COMPETE AGREEMENT
Instructions: This "Spousal and Domestic Partner Confidentiality and Covenant Not to Compete Agreement" must be completed and signed by the spouses or domestic partners of the equity owners of the Franchisee. The signed original(s) of the Agreement must then be immediately delivered to the Franchisor by the Franchisee.
| This Agreement is made and entered into between LearningRx Franchise Corporation, ("Franchisor"), ("Franchisee"), and ("Spousal Affiliate"). | |
|---|---|
| RECITALS | |
| WHEREAS, | |
| Franchisor has developed a unique system (the "System") and is engaged in | |
| the business of offering, selling or granting franchises or licenses for the operation of a location to | |
| provide education services, including but limited to (a) learning enhancement courses, programs or | |
| products, (b) brain training or cognitive | |
| training courses, programs or products and (c) math and | |
| reading training courses, programs, or products ("Business"), known as "LearningRx Training | |
| CentersSM | |
| "; and, | |
| WHEREAS, | |
| Franchisor has granted to Franchisee the limited right to develop a | |
| LearningRx Business using the System, the Licensed Marks and the Trade Secrets, pursuant to a | |
| Franchise Agreement entered into on the | |
| day of, 20 ("Franchise | |
| Agreement"), by and between Franchisor and Franchisee; |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the franchise agreement is made and entered into between LearningRx Franchise Corporation, the Franchisor, the Franchisee, and the Spousal Affiliate. The agreement outlines the rights and responsibilities of each party involved in the franchise relationship.
Learningrx requires that the Franchisee obtain written agreements from Spousal Affiliates to protect trade secrets and prevent unfair competition. Spousal Affiliates, by definition, are associated with the Franchisee and have access to confidential information. These Spousal Affiliates need to receive and use trade secrets during their association with the franchisee.
This setup ensures that all parties who have access to Learningrx's confidential information and system are legally bound to protect it. This includes not only the franchisee who directly operates the business but also their spouses or affiliates who may gain knowledge of the Learningrx system. By including these parties in the agreement, Learningrx aims to safeguard its business methods and maintain a competitive edge.