If a spouse or domestic partner of a Learningrx franchisee dies, what happens to the monetary obligations existing at the time of death?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding clauses (a) and (b) above, a spouse or domestic partner who is also a guarantor hereunder and who becomes widowed and who does not have (and will not obtain) an ownership interest in the Franchisee, the Agreement, or any Franchise Agreement granted thereunder as an owner, co-owner, investor, member, partner, shareholder or like capacity shall not thereafter be held responsible for any monetary obligations thereafter arising out of the terms and conditions of this Guaranty and Assumption of Obligations unless any such ownership interest is acquired in any manner by the widowed spouse or domestic partner, or the widowed spouse's children, deceased spouse's children, or domestic partner's children. Notwithstanding any change in ownership resulting from the death of a spouse or domestic partner, all monetary obligations and liabilities existing at the time of death shall continue to be an obligation of the surviving spouse or domestic partner until such obligations or liabilities shall be paid in full by the estate or by the guarantor spouse or domestic partner. Notwithstanding the limitations set forth above, any and all other non-monetary obligations of the Agreement shall remain an obligation of the surviving spouse.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, if a spouse or domestic partner who is also a guarantor of the Learningrx franchise agreement dies, all monetary obligations and liabilities existing at the time of death remain an obligation of the surviving spouse or domestic partner. This obligation continues until the debts are paid in full by either the estate of the deceased or by the surviving spouse or domestic partner.
However, a widowed spouse or domestic partner who does not have and will not obtain an ownership interest in the Learningrx franchise, agreement, or any franchise agreement granted under it as an owner, co-owner, investor, member, partner, shareholder, or similar capacity will not be held responsible for any monetary obligations arising after they are widowed. This protection is voided if the widowed spouse or domestic partner, or their children, acquire any ownership interest in the franchise.
It is important to note that even with the death of a spouse or domestic partner, any and all non-monetary obligations of the Learningrx franchise agreement remain an obligation of the surviving spouse. This means that while the surviving spouse may not be responsible for new monetary debts, they must still adhere to the other terms and conditions outlined in the franchise agreement.