Is the Corcoran Note a joint and several obligation?

According to Corcoran's 2025 Franchise Disclosure Document, the Promissory Note will be the joint and several obligation of the Maker, Co-Maker(s), all guarantors, and endorsers, if any. This means that each party who signs the note is independently liable for the full amount of the debt. Corcoran can pursue any one or all of the signers for the entire outstanding balance, regardless of their individual share or contribution to the underlying obligation. This liability extends to their heirs, executors, personal representatives, successors, and assigns, and it benefits Corcoran and its successors and assigns.

This clause provides significant protection to Corcoran as the Holder of the note, as it simplifies the process of recovering funds in case of default. Corcoran does not need to determine the specific responsibility of each party but can seek full recovery from any one of them. For potential Co-Makers, guarantors, and endorsers, this represents a significant risk, as they could be held responsible for the entire debt even if other parties are capable of paying their share.

Furthermore, the FDD states that Makers and Co-Makers agree that any attorney-at-law may appear in any court of record situated in any County where the Maker and/or Co-Maker(s) then reside or in the County where Maker and/or Co-Maker signed this Note and being in the United States at any time after the debt evidenced will become due, either at its stated maturity or by declaration and will waive the issuing and service of process and confess judgment against the Maker and Co-Maker(s), jointly and severally, in favor of the Holder, for the amount then owing on this Note, together with the costs of suit and thereupon release all errors and waive all right of appeal. This confession of judgment clause allows Corcoran to obtain a judgment against the Maker and Co-Maker(s) without a full trial, streamlining the collection process in case of default.

Prospective franchisees should carefully consider the implications of joint and several liability and seek legal counsel to fully understand their obligations before signing any promissory notes or related agreements with Corcoran. They should also assess the financial stability and creditworthiness of any co-signers, guarantors, or endorsers, as their own financial exposure could be significantly affected by the actions or inactions of these other parties.