Who benefits from the Beehive Homes 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 the 2025 Beehive Homes Franchise Disclosure Document, the Guaranty benefits Beehive Homes, Inc., referred to as the Franchisor, and its successors and assigns. The Guaranty ensures that all sums owed by the Franchisee to Beehive Homes and its affiliates under the Franchise Agreement are fully and promptly paid. This includes all fees and charges, interest, default interest, other costs, and attorneys' fees incurred in connection with enforcing the Franchise Agreement.
Furthermore, the Guaranty covers the performance of all other obligations of the Franchisee arising under the Franchise Agreement. The Guarantor's obligations are primary, meaning that upon Beehive Homes' request, the Guarantor must immediately pay all amounts due and owing and fulfill every obligation to Beehive Homes and its affiliates under the Franchise Agreement.
In essence, the Guaranty provides Beehive Homes with a legal mechanism to ensure financial and operational compliance from its franchisees. This reduces the risk to Beehive Homes by having a guarantor who is responsible for the franchisee's debts and obligations. This is a common practice in franchising, as it offers the franchisor an additional layer of security and recourse in case the franchisee defaults or fails to meet their contractual obligations.