Under the Pearce Bespoke Guaranty, is the undersigned's liability joint and several with other guarantors?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the liability of the undersigned under the Guaranty is joint and several with all signatories to similar guaranties of the Franchisee's obligations. This means that each guarantor is individually liable for the full amount of the Franchisee's obligations, as well as collectively liable with the other guarantors. Pearce Bespoke can pursue any one or all of the guarantors for the full amount owed, regardless of the contributions or obligations of the other guarantors.

This arrangement benefits Pearce Bespoke by providing them with multiple avenues for recovering any debts or unfulfilled obligations. If one guarantor is unable to pay, Pearce Bespoke can seek the full amount from another guarantor who has the means. This reduces the risk to Pearce Bespoke in case of default by the Franchisee.

For a prospective Pearce Bespoke franchisee, this means that if they are asked to sign a personal guarantee, they are taking on significant personal financial risk. They are not only responsible for their own portion of the debt, but also potentially for the entire debt if the other guarantors are unable to pay. It is crucial for potential franchisees to fully understand the implications of a joint and several guarantee and to assess their own financial situation and risk tolerance before signing such an agreement. They should also seek legal counsel to fully understand their obligations and potential liabilities under the guarantee.