Under the Learningrx Guaranty and Assumption of Obligations, what does each undersigned guarantor consent and agree to?
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, each undersigned guarantor consents and agrees to several conditions regarding their liability. Specifically, their liability is direct, immediate, joint, and several, meaning Learningrx can pursue any or all guarantors for the full amount owed without first pursuing the franchisee. The guarantor must fulfill any payment or performance required under the Franchise Agreement if the franchisee fails or refuses to do so punctually.
This liability is not contingent upon Learningrx pursuing remedies against the franchisee or any other person. Furthermore, the guarantor's liability will not be diminished or affected by any extensions of time, credit, or other indulgences that Learningrx may grant to the franchisee, including accepting partial payments or releasing claims. These actions do not modify or amend the guaranty, which remains continuing and irrevocable during the term of the Franchise Agreement.
In simpler terms, if you sign as a guarantor for a Learningrx franchise, you are taking on a significant financial responsibility. Learningrx can demand immediate payment or performance from you if the franchisee defaults, regardless of whether they have tried to recover from the franchisee first. Any leniency Learningrx offers to the franchisee does not reduce your obligations as a guarantor. This commitment is in effect for the entire duration of the franchise agreement, making it a long-term and serious undertaking.