Is the liability of the spouse or domestic partner contingent upon Learningrx pursuing remedies against the franchisee?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Each of the undersigned waives: (i) acceptance and notice of acceptance by Franchisor of the foregoing undertakings; (ii) notice of demand for payment of any indebtedness or non-performance of any obligations hereby guaranteed; (iii) protest and non-performance of any obligations hereby guaranteed; (iv) any right it may have to require that an action be brought against Franchisee or any other person as a condition of liability; and (v) any and all other notices and legal or equitable defenses to which it may be entitled.
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, the liability of a spouse or domestic partner is not contingent upon Learningrx first pursuing remedies against the franchisee. The spouse or domestic partner's guaranty of the franchisee's obligations is direct and immediate.
Specifically, the document states that each spouse or domestic partner consents and agrees that their liability under the guaranty is joint and several. They must render any payment or performance required under the Franchise Agreement upon demand if the franchisee fails or refuses to do so punctually. This liability is not contingent or conditioned upon Learningrx pursuing any remedies against the franchisee or any other person first.
Furthermore, the liability of the spouse or domestic partner will not be diminished, relieved, or otherwise affected by any extension of time, credit, or other indulgence that Learningrx may grant to the franchisee or any other person. This includes the acceptance of any partial payment or performance, or the compromise or release of any claims. The guaranty is continuing and irrevocable during the term of the Franchise Agreement.
This arrangement is common in franchising, as it provides Learningrx with an additional layer of security to ensure the franchisee fulfills their obligations under the agreement. Prospective franchisees should carefully consider this provision and discuss it with their spouse or domestic partner before entering into a franchise agreement with Learningrx.