Can LearningRx extend, renew, or credit any of the indebtedness for any period under the LearningRx Guaranty?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor, its successors and assigns, may from time to time, without notice to the undersigned: (a) resort to the undersigned for payment of any of the indebtedness, whether or not it or its successors have resorted to any property securing any of the indebtedness or proceeded against any other of the undersigned or any party primarily or secondarily liable on any of the
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indebtedness; (b) release or compromise any indebtedness of any of the undersigned hereunder or any indebtedness of any party or parties primarily or secondarily liable on any of the indebtedness; (c) extend, renew or credit any of the indebtedness for any period (whether or not longer than the original period); (d) alter, amend or exchange any of the indebtedness; or (e) give any other form of indulgence, whether under the Agreement or otherwise.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, Learningrx, its successors, and assigns have the right to extend, renew, or credit any indebtedness for any period, regardless of whether it is longer than the original period, without notifying the undersigned. This is related to the LearningRx Guaranty.
This means that if a franchisee has a payment plan or other financial obligation guaranteed by a third party, Learningrx can modify the terms of that obligation without needing to inform the guarantor. This could include extending the payment period, renewing the debt, or providing credit towards the balance.
For a prospective Learningrx franchisee, this clause highlights the importance of understanding the full scope of the LearningRx Guaranty and the potential liabilities it creates. Anyone acting as a guarantor needs to be aware that the terms of the debt can change without their knowledge or consent, potentially increasing their financial exposure. It is advisable to seek legal counsel to fully understand the implications of the LearningRx Guaranty before signing it.