Can Beehive Homes assign the Guaranty?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS UNDER FRANCHISE | ||
|---|---|---|
| AGREEMENT (the "Guaranty") is given this day of, 2025, by the undersigned: | ||
| 1. | In consideration of, and as an inducement to, the execution of the franchise agreement | |
| dated, 2025 (referred to in this Guaranty, together with all applicable | ||
| amendments, renewals, addenda, supplemental agreements and assignments, as the "Franchise | ||
| Agreement") by and among BEE HIVE HOMES, INC. (the "Franchisor") and the parties | ||
| identified therein as the Franchisee (the "Franchisee"), and for other good and valuable | ||
| consideration, each of the undersigned, jointly and severally, for themselves, their heirs, legal | ||
| representatives, successors and assigns (hereinafter referred to individually | and collectively as | |
| "Guarantor" whether one or more) personally, unconditionally | and irrevocably guarantees to | |
| Franchisor, and its successors and assigns, (a) the full and prompt payment of all sums owed by | ||
| Franchisee to Franchisor and its Affiliates under the Franchise Agreement and otherwise relating | ||
| to the Home, including, but not limited to, all fees and charges, interest, default interest, all other | ||
| costs and fees and attorneys' fees incurred in connection with enforcement of the Franchise | ||
| Agreement; and (b) the performance of all other obligations of Franchisee arising under the | ||
| Franchise Agreement (collectively, the "Obligations"). This Guaranty | is primary to Guarantor | |
| and Guarantor will immediately, upon request of Franchisor, make payment in full of all amounts | ||
| due and owing to Franchisor and its Affiliates under the Franchise Agreement, and perform each | ||
| and every Obligation to Franchisor and its Affiliates under the Franchise Agreement. | ||
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guaranty provided by the franchisee to Beehive Homes is assignable. The Guaranty ensures the franchisee's obligations to Beehive Homes are met, and Beehive Homes retains the right to transfer this assurance to its successors or assigns. This means that if Beehive Homes were to be acquired or merge with another entity, the new entity would inherit the benefits of the Guaranty.
This clause protects Beehive Homes by allowing them to transfer their rights to receive payments and enforce obligations under the franchise agreement to another party. For a prospective franchisee, this means that the obligation to fulfill the terms of the franchise agreement extends not only to Beehive Homes but also to any entity that Beehive Homes might assign the agreement to. The franchisee's responsibility remains unchanged even if the ownership of Beehive Homes changes.
The document states that each of the undersigned, jointly and severally, for themselves, their heirs, legal representatives, successors and assigns (hereinafter referred to individually and collectively as "Guarantor" whether one or more) personally, unconditionally and irrevocably guarantees to Franchisor, and its successors and assigns, (a) the full and prompt payment of all sums owed by Franchisee to Franchisor and its Affiliates under the Franchise Agreement and otherwise relating to the Home, including, but not limited to, all fees and charges, interest, default interest, all other costs and fees and attorneys' fees incurred in connection with enforcement of the Franchise Agreement; and (b) the performance of all other obligations of Franchisee arising under the Franchise Agreement (collectively, the "Obligations"). This Guaranty is primary to Guarantor and Guarantor will immediately, upon request of Franchisor, make payment in full of all amounts due and owing to Franchisor and its Affiliates under the Franchise Agreement, and perform each and every Obligation to Franchisor and its Affiliates under the Franchise Agreement.