Does acceptance of partial payment from the Learningrx franchisee affect the spouse's or domestic partner's obligations under the guaranty?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned consents and agrees that: (i) his/her direct and immediate liability under this guaranty shall be joint and several; (ii) he or she shall render any payment or performance required under the Agreement upon demand if Franchisee fails or refuses punctually to do so; (iii) such liability shall not be contingent or conditioned upon pursuit by Franchisor of any remedies against Franchisee or any other person; and (iv) such liability shall not be diminished, relieved or otherwise affected by any extension of time, credit, or other indulgence which Franchisor may from time-to-time grant to Franchisee or to any other person, including without limitation the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable during the term of the Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, a spouse's or domestic partner's obligations under the guaranty are not diminished or affected by the acceptance of partial payments from the franchisee. The guaranty signed by the spouse or domestic partner ensures that Learningrx will receive all payments and performance required under the Franchise Agreement.
The document states that the guarantor's liability will not be affected by any extension of time, credit, or other indulgence granted to the franchisee, including the acceptance of partial payment or performance. The guarantor's obligations remain even if Learningrx compromises or releases claims against the franchisee. This protects Learningrx by ensuring that the guarantor remains responsible for the franchisee's obligations, regardless of any leniency Learningrx might extend to the franchisee.
This clause is designed to provide Learningrx with a continuous and irrevocable guarantee throughout the term of the Franchise Agreement. It means that spouses or domestic partners who act as guarantors cannot use the defense that Learningrx's acceptance of partial payments or other accommodations to the franchisee somehow reduces their obligations under the guaranty. The guarantor remains fully liable, which is a significant commitment and risk for the guarantor.