Does a compromise or release of claims against 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 compromise or release of any claims against the Learningrx franchisee does not diminish, relieve, or otherwise affect the liability of the spouse or domestic partner under the guaranty.
The document states that the spouse's or domestic partner's liability remains intact regardless of any extensions of time, credit, or other allowances Learningrx may grant to the franchisee or any other person. This includes the acceptance of partial payments or performance, or the compromise or release of any claims. These actions do not modify or amend the guaranty, which remains continuous and irrevocable during the term of the Franchise Agreement.
This provision ensures that Learningrx retains the full benefit of the spousal or domestic partner guaranty, even if they make concessions to the franchisee. Prospective franchisees should understand that their spouse's or domestic partner's obligations are not lessened by any compromises Learningrx might make with the franchisee. This clause is designed to protect Learningrx's interests and ensure the financial commitment to the franchise agreement is upheld.