What are 'Ancillary Agreements' in the context of the Bee Organized franchise personal guarantee?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
d/or should Franchisee, fail to obtain our consent to the proposed Transfer of the Franchise Agreement to a third party (which we may either reject or approve, in accordance with the terms and conditions of the Franchise Agreement), you shall remain subject to the non-competition covenants contained in
Article 4 of this Agreement and irrespective of any purported and/or actual Transfer in violation of the terms and conditions of the Franchise Agreement.
6. Personal Guaranty of Franchise Agreement and Financial Obligations.
To secure Franchisee's financial obligations under the Franchise Agreement and all ancillary agreements executed by Franchisee in connection with the Franchise Agreement, including, but not limited to, any agreement for the purchase of goods or services from us or an affiliate of ours (collectively the "Ancillary Agreements") you individually, jointly and severally, and personally and unconditionally:
- (a) guarantee to us and our successor and assigns, that Franchisee shall punctually satisfy and pay all of Franchisee's payment and other obligations under the Franchise Agreement;
- (b) guarantee to us and our successor and assigns, that Franchisee shall punctually satisfy and pay all of Franchisee's payment and other obligations under the Ancillary Agreements;
- (c) agree, at all times, to be personally bound by and personally liable for each and every fee, payment and monetary obligation due from Franchisee to us pursuant to the terms of the Franchise Agreement (including, but not limited to, the fee obligations of Article 5 of the Franchise Agreement, the advertising obligations of Article 9 of the Franchise Agreement, and the indemnification obligations of Article 10 of the Franchise Agreement);
- (d) agree, at all times, to be personally bound by and personally liable for each and every fee, payment and monetary obligation due from Franchisee to us and/or our affiliates under the Ancillary Agreements;
- (e) do, at all times, hereby personally guarantee payment of each and every fee, payment and monetary obligation due or that may become due from Franchisee to us pursuant to the terms of the Franchise Agreement including, but not limited to, the fee obligations of Article 5 of the Franchise Agreement, the marketing obligations of Article 9 of the Franchise Agreement, and the indemnification obligations of Article 10 of the Franchise Agreement; and
- (f) do, at all times, hereby personally guarantee payment of each and every fee, payment and monetary obligation due or that may become due from Franchisee to us pursuant to the terms of the Ancillary Agreements.
You waive: (a) acceptance and notice of acceptance by us of the foregoing undertakings; (b) notice of demand for payment of any indebtedness guaranteed; (c) protest and notice of default to any party with respect to the indebtedness guaranteed; (d) any right you may have to require that an action be brought against Franchisee or any other person as a condition of liability;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, 'Ancillary Agreements' are defined within the context of the personal guarantee required of franchisees. These agreements encompass any agreements executed by the franchisee in connection with the Franchise Agreement. Specifically, this includes, but is not limited to, any agreement for the purchase of goods or services from Bee Organized or its affiliates.
The personal guarantee mandates that the franchisee individually, jointly, and severally guarantees the punctual satisfaction and payment of all financial obligations under both the Franchise Agreement and these Ancillary Agreements. This means the franchisee is personally liable for all fees, payments, and monetary obligations due to Bee Organized or its affiliates as outlined in these agreements.
Furthermore, the FDD specifies that the term 'Ancillary Agreements' includes the Franchise Owner and Spouse Agreement and Guaranty, as well as the Assignment of Telephone Numbers and Digital Media Accounts. These agreements, whether entered into individually or collectively, fall under the umbrella of 'Ancillary Agreements' for which the franchisee is personally responsible. A breach or default of an Ancillary Agreement by the Franchisee, an Owner, and/or a Spouse can result in a default of the Franchise Agreement.