Under what circumstances must the guarantor of a Bee Organized franchise render payment?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
l action is to be based (hereinafter, the "30 Day Cure Notice"). Franchisee agrees that the 30 Day Cure Notice is a strict condition precedent to Franchisee commencing, or otherwise instituting, legal action or proceeding against Franchisor for any reason whatsoever.
ARTICLE 17 OBLIGATIONS UPON TERMINATION OR EXPIRATION
17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR
Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchi
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
The 2025 Bee Organized Franchise Disclosure Document (FDD) states that when a Bee Organized franchise agreement is terminated or expires for any reason, the franchisee must immediately pay all outstanding sums and fees to Bee Organized. This includes, but isn't limited to, royalty fees, advertising contributions, and any other payments owed for products or services, such as system supplies.
Additionally, in the event of a transfer of the franchise, all obligations of the franchisee under the Franchise Agreement and related ancillary agreements must be assumed by the transferee, each individual owner of the transferee, and their respective spouses in a manner satisfactory to Bee Organized. This suggests that a guarantor's obligations could extend to ensuring these assumed responsibilities are met by the new parties involved in the franchise.
While the FDD mentions a Guaranty as part of the Franchise Owner and Spouse Agreement, it does not explicitly detail the specific conditions under which the guarantor is obligated to make payments. A prospective franchisee should seek clarification from Bee Organized regarding the exact terms and conditions outlined in the Guaranty agreement to fully understand the guarantor's responsibilities and payment obligations.