What is the document described in the Beehive Homes FDD as 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' is formally titled "THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS UNDER FRANCHISE AGREEMENT." This document is dated for the year 2025. The Guaranty is provided by the undersigned to Bee Hive Homes, Inc., referred to as the "Franchisor." It is made in consideration of the execution of the franchise agreement between Beehive Homes and the Franchisee. The franchise agreement includes all amendments, renewals, addenda, supplemental agreements, and assignments. The document collectively refers to these as the "Franchise Agreement".
In this Guaranty, each undersigned party, referred to as the "Guarantor," agrees to be jointly and severally liable, along with their heirs, legal representatives, successors, and assigns. The Guarantor personally, unconditionally, and irrevocably guarantees to Beehive Homes the full and prompt payment of all sums owed by the Franchisee. This includes payments to Beehive Homes and its affiliates under the Franchise Agreement or related to the Home. These sums include all fees and charges, interest, default interest, other costs and fees, and attorneys' fees incurred in enforcing the Franchise Agreement.
The Guarantor also guarantees the performance of all other obligations of the Franchisee arising under the Franchise Agreement. According to the 2025 FDD, this Guaranty is primary to the Guarantor. Upon Beehive Homes' request, the Guarantor must immediately pay all amounts due and owing and perform every obligation to Beehive Homes and its affiliates under the Franchise Agreement.
In simpler terms, the Guaranty ensures that if the franchisee fails to meet their financial or operational obligations under the Franchise Agreement, the guarantor is legally bound to step in and fulfill those obligations. This protects Beehive Homes by providing an additional layer of security and recourse in case of franchisee default. Prospective franchisees should carefully review the Guaranty and understand its implications, as it represents a significant legal and financial commitment.