Is the liability of the spouse or domestic partner under the Learningrx guaranty joint, several, or both?
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, the liability of a spouse or domestic partner who guarantees the franchise agreement is both joint and several. This means that Learningrx can pursue one guarantor, some of the guarantors, or all of the guarantors for the full amount of the obligation, regardless of the actions of the primary franchisee. This applies to the Spousal and Domestic Partner Guaranty and Assumption of Obligations.
This type of guarantee is common in franchising, as it provides the franchisor with maximum protection in case of default. The guarantor's liability is direct and immediate, meaning Learningrx does not have to first pursue remedies against the franchisee before seeking payment or performance from the guarantor. The guarantor also waives certain rights, such as requiring Learningrx to first bring an action against the franchisee.
Furthermore, the guarantee is continuing and irrevocable during the term of the franchise agreement, and it is not affected by any extensions of time, credit, or other indulgences that Learningrx may grant to the franchisee. This ensures that the guarantee remains in effect even if the terms of the franchise agreement are modified. The death of a guarantor does not terminate their liability, which extends to their administrators, executors, successors, and assigns.