What conditions trigger the Beehive Homes Guarantor's obligations under 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 the 2025 Beehive Homes Franchise Disclosure Document, the Guarantor's obligations are triggered by the Franchisee's failure to meet their obligations under the Franchise Agreement. Specifically, the Guarantor unconditionally guarantees to Beehive Homes the full and prompt payment of all sums owed by the Franchisee, including fees, charges, interest, and attorneys' fees related to enforcing the Franchise Agreement. The Guarantor also guarantees the performance of all other obligations of the Franchisee under the Franchise Agreement.
This means that if a Beehive Homes franchisee fails to pay required fees or otherwise breaches the Franchise Agreement, Beehive Homes can immediately seek payment or performance from the Guarantor without first pursuing the Franchisee. The Guarantor's obligation is primary, meaning they cannot require Beehive Homes to first exhaust all remedies against the Franchisee before demanding payment or performance from the Guarantor.
The Guarantor also agrees to pay all attorneys' fees and costs incurred by Beehive Homes in collecting or attempting to collect under the Guaranty or in enforcing it against the Franchisee or Guarantor. The Guarantor waives any right to require Beehive Homes to take action against the Franchisee before pursuing the Guarantor. This includes waiving rights to reimbursement or subrogation from the Franchisee as a result of the Guarantor's performance under the Guaranty.
These provisions are designed to provide Beehive Homes with strong protection in the event of a franchisee default. Prospective franchisees should carefully consider the implications of the Guaranty and ensure that any Guarantor understands the full extent of their obligations and potential liabilities.