What constitutes an 'Affiliate' of Beehive Homes, according to the Franchise Agreement?
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 term 'Affiliates' is referenced within the context of the Guaranty and Assumption of Obligations Under Franchise Agreement. Specifically, the guarantor is responsible for ensuring 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, all other costs and fees, and attorneys' fees incurred in connection with the enforcement of the Franchise Agreement.
Furthermore, the guarantor is also responsible for the performance of all other obligations of the franchisee arising under the Franchise Agreement to Beehive Homes and its affiliates. This means that the guarantor's obligations extend not only to financial matters but also to the operational and compliance aspects of the franchise agreement.
In practical terms, this clause ensures that Beehive Homes can pursue not only the franchisee but also the guarantor for any financial or operational shortcomings. The inclusion of 'Affiliates' broadens the scope of this protection, allowing Beehive Homes to claim against the guarantor for obligations owed to any related entities, not just directly to the franchisor itself. However, the FDD does not define what constitutes an 'Affiliate'.
Prospective franchisees should seek clarification from Beehive Homes regarding the definition of 'Affiliates' to fully understand the scope of the guarantor's obligations. Understanding which entities are considered affiliates is crucial for assessing the potential liabilities and responsibilities associated with the franchise agreement and the guaranty.