Who is considered a 'Guarantor' under the Beehive Homes Guaranty?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
RANCHISE AGREEMENT**
| 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"). |
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a Guarantor is defined as each of the undersigned parties, jointly and severally, including their heirs, legal representatives, successors, and assigns. This definition applies whether there is one or multiple guarantors. The Guarantor personally, unconditionally, and irrevocably guarantees to Beehive Homes the full and prompt payment of all sums owed by the Franchisee to Beehive Homes and its Affiliates under the Franchise Agreement. This includes all fees and charges, interest, default interest, and attorneys' fees incurred in connection with the enforcement of the Franchise Agreement. The Guarantor also guarantees the performance of all other obligations of the Franchisee arising under the Franchise Agreement.
In practical terms, this means that if the franchisee fails to meet their financial or operational obligations under the Franchise Agreement, Beehive Homes can seek recourse directly from the Guarantor. The Guarantor's obligations are primary, meaning Beehive Homes does not necessarily need to pursue the franchisee first before seeking payment or performance from the Guarantor. This arrangement provides Beehive Homes with an additional layer of financial security and assurance that the franchisee's obligations will be met.
Prospective franchisees should carefully consider the implications of the Guaranty, especially if they are relying on a third party to act as a Guarantor. The Guarantor should be fully aware of the financial and operational obligations of the franchisee and be prepared to meet those obligations if the franchisee defaults. Additionally, the Guarantor will be required to deliver complete and current financial information to Beehive Homes upon request, as well as copies of all deeds showing the Guarantor as a direct or indirect owner of the Location and Home. The Guarantor must also consent to Beehive Homes recording a notice of its interest in the Location and Home.
Furthermore, each Guarantor agrees to pay all attorneys' fees and costs associated with the collection or attempted collection of the Guaranty, or in any negotiations related to the obligations guaranteed. They also covenant not to transfer any interest in the Location or Home without the express written consent of Beehive Homes. Articles XII, XIII, and XIV of the Franchise Agreement also apply to the Home and Location as though the Guarantor were the Franchisee. Given these significant responsibilities and potential liabilities, anyone considering acting as a Guarantor should seek independent legal and financial advice.