Is liability under the Burros Fries Individual Guaranty joint and several with the franchisee?

According to Burros Fries's 2024 Franchise Disclosure Document, the liability under the Individual Guaranty is joint and several with any other guarantor and the franchisee. This means that each guarantor is individually and collectively responsible for the full amount of the franchisee's obligations.

In practical terms, Burros Fries can pursue any one guarantor, or the franchisee, for the full amount owed, regardless of whether other guarantors exist or what their individual contributions might be. This provides Burros Fries with a stronger position to recover any losses in case of default by the franchisee.

For a prospective Burros Fries franchisee, this implies that if they require a guarantor for their franchise agreement, the guarantor should be fully aware of the extent of their potential liability. The guarantor's personal assets are at risk, and they could be held responsible for the entire debt, even if there are other guarantors. It is advisable for potential guarantors to seek independent legal counsel to fully understand the implications of this joint and several liability.

This type of clause is relatively common in franchising, as it offers the franchisor greater security. However, it is crucial for all parties involved to understand the potential risks and liabilities before signing the agreement.