Under the Gokhale Method Guarantee, what is the relationship between the Guarantors' obligations?

According to Gokhale Method's 2024 Franchise Disclosure Document, the obligations of the Guarantors under the Guarantee are "joint and several." This means that if there are multiple guarantors, Gokhale Method can pursue any one or all of them for the full amount of the franchisee's obligations.

In practical terms, this clause provides Gokhale Method with a stronger position, as they are not required to pursue all guarantors equally or in a specific order. They can target the guarantor with the most accessible assets to recover any outstanding debts or unfulfilled obligations of the franchisee. This is a common practice in franchising to ensure the franchisor has recourse in case of franchisee default.

For a prospective Gokhale Method franchisee, this implies that anyone signing as a guarantor should fully understand the potential financial risks. Each guarantor is responsible for the entire debt, not just a portion. It would be prudent for potential guarantors to assess the franchisee's financial stability and business plan thoroughly before committing to the guarantee. They may also want to seek legal advice to fully understand the implications of a joint and several guarantee.