The Learning Experience Franchise

Financing Details

The Learning Experience Systems LLC does not offer direct or indirect financing to its franchisees. While The Learning Experience Systems LLC does not guarantee franchisees' notes, leases, or other obligations, if it assigns a lease for a center to a franchisee, the landlord may require The Learning Experience Systems LLC to provide a limited guaranty.

Litigation Summary

The Learning Experience Systems LLC was involved in four concluded litigation cases. The first case, "The Learning Experience Systems LLC, et al. v. MGM Group Holdings LLC, et al.", filed in 2013, involved The Learning Experience Systems LLC suing a franchisee for breaching their franchise and settlement agreements. The franchisee filed for bankruptcy in 2015, and the matter was settled in December 2015, with an affiliate of The Learning Experience Systems LLC repurchasing the center. The second case, "Bezner v. The Learning Experience Systems LLC, et al.", commenced in 2010, involved The Learning Experience Systems LLC suing a franchisee for monetary damages and injunctive relief due to failures to pay fees, rent, operate according to standards, and trademark infringement. This case was stayed due to the franchisee's bankruptcy filing and settled in August 2014, with The Learning Experience Systems LLC repurchasing two centers and refunding a franchise fee for a third unopened center. The third case, "United States of America v. Tutor Time Child Care Systems, Inc., Michael Weissman and Richard Weissman", dating back to 1996, resulted in a Consent Order against Tutor Time and its co-founders (including Richard Weissman, a co-founder of The Learning Experience Systems LLC). The defendants agreed to be permanently enjoined from violating the FTC Franchise Rule regarding timely disclosure and financial performance representations, making false statements, and restricting franchisees from discussing experiences with the FTC. A civil penalty of $220,000 was paid. Richard Weissman's involvement with Tutor Time ended in 1999. The fourth case, "Department of Corporations of California v. Tutor Time", from 1999, related to an investigation into Tutor Time franchise sales when the company was not properly registered in California. Tutor Time entered a settlement agreement, received a Desist and Refrain Order, and paid investigation costs. Richard Weissman, a co-founder of The Learning Experience Systems LLC, agreed to follow California Regulations concerning franchise sales at that time.

Renewal Conditions

To renew their franchise agreement, The Learning Experience Systems LLC franchisees must be in good standing, provide 180 days' written notice before the current term expires, and sign the then-current form of Franchise Agreement, which may have materially different terms. Franchisees must also remodel the Center, ensure they have the right to renew their lease for the approved location, promptly execute all required agreements, and sign a general release, though this release may not be permitted in all jurisdictions. No renewal fee is charged.

Staffing Notes

The Learning Experience Systems LLC requires each Center to employ a full-time Center Director who dedicates at least 40 hours per week to personal supervision and meets all applicable legal qualifications. If a franchisee owns multiple centers, an additional Center Director is required for each. The Center Director or another approved, trained employee must be present whenever the Center is open. Franchisees are responsible for hiring and screening all employees, ensuring they have no record of unacceptable conduct and are fit for the childcare industry. They must ensure all staff refrain from such conduct and adhere to all applicable governmental, licensing, and labor laws. Staff involved in management, along with affiliates, must sign non-disclosure agreements.