Is the Bee Organized personal guaranty continuing and irrevocable?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
use of the owner of franchisee and is given and signed by you in favor of Bee Organized Enterprises, LLC, franchisor of the Bee Organized franchise system and in favor of Bee Organized Enterprises, LLC's successors and assigns, upon the terms and conditions set forth in this Agreement. In this Agreement Bee Organized Enterprises, LLC is referred to as "us", "our" or "we", and each individual that signs this Agreement is referred to as "you".
Recitals and Representations
WHEREAS, Franchisee has entered into a Bee Organized Franchise Agreement (the "Franchise Agreement") for the development and operation of a Bee Organized business (the "Franchised Business" or "Bee Organized Business") that offers and provides home and business organization services, life transition and moving assistance, and related concierge services (the "Approved Services and Products") under the Licensed Marks (defined below);
WHEREAS, you represent that you have received and have thoroughly reviewed the completed Franchise Agreement, including schedules and exhibits attached to the Franchise Agreement;
WHEREAS, we have recommended that you thoroughly review the Franchise Agreement, this Agreement and all schedules and exhibits to the Franchise Agreement with a lawyer selected and hired by you;
WHEREAS, you represent to us that you are either: (a) an Owner of Franchisee such that you own or control a legal, equitable or beneficial ownership or equity interest in Franchisee and/or otherwise meet the definition of an "Owner" as set forth in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
Based on the 2025 Bee Organized Franchise Disclosure Document, the Franchise Owner and Spouse Agreement and Guaranty is a legally binding agreement required to be signed by the franchisee and their spouse. This agreement ensures that both parties are committed to upholding the terms of the Franchise Agreement. Specifically, a breach or default of this agreement by the franchisee, owner, or spouse can result in a default of the Franchise Agreement itself. This highlights the importance of understanding and adhering to all terms outlined in the Franchise Owner and Spouse Agreement and Guaranty.
When transferring a Bee Organized franchise, the new transferee and their spouse must also execute the Franchise Owner and Spouse Agreement and Guaranty. This ensures that the obligations and responsibilities outlined in the original agreement are maintained with the new ownership. The agreement is in the form attached to the Franchise Agreement as Exhibit 1.
The FDD does not explicitly state whether the personal guaranty within the Franchise Owner and Spouse Agreement and Guaranty is continuing and irrevocable. A prospective franchisee should seek clarification from Bee Organized regarding the specific terms of the guaranty, including its duration, conditions for release, and whether it is indeed continuing and irrevocable.