In the LearningRx Guaranty, what is included in the definition of 'indebtedness'?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
The word "indebtedness" is used herein in its most comprehensive sense and includes without limitation any and all advances, debts, obligations and liabilities of the Area Developer, now or hereafter incurred, either voluntarily or involuntarily, and whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, or whether recovery thereof may be now or hereafter barred by any statute of limitation or is otherwise unenforceable.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the term 'indebtedness' within the context of the Guaranty is broadly defined. It encompasses any and all advances, debts, obligations, and liabilities of the Area Developer. This includes debts that are currently in place or may arise in the future.
The definition extends to debts incurred voluntarily or involuntarily, whether they are currently due or not, and whether they are absolute or contingent. It also covers debts that are liquidated (fixed in amount) or unliquidated (not yet determined), and those that are determined or undetermined.
Furthermore, the definition includes debts for which recovery may be barred by any statute of limitations or that are otherwise unenforceable. This comprehensive definition ensures that the Guarantors are responsible for a wide range of financial obligations the Area Developer may have to Learningrx under the terms of the franchise agreement.