8. CONTINGENCIES

The Company has entered into guarantee agreements with key franchisee partners in order to support them obtaining additional funding to expand their business into new markets. All of the loans associated with these agreements have been paid in full and the Company incurred a charge of $2 million in 2014 to fulfill its guarantee obligation on one of the loans. The guarantee with Team Wellness, Inc. provided financial coverage for a $1.0 million loan and a $1.0 million line of credit. The franchisee associated with these loans failed to pay the monthly obligations and the Company paid off the loans in April 2015, which was fully accrued and expensed in the amount of $2.0 million as of December 31, 2014. The Company was a secondary guarantor on the loan and line of credit and has pursued personal recourse against the franchise owner.