Does an extension, modification, or assignment of the Franchise Agreement release the Beehive Homes Guarantors from their obligations?

According to Beehive Homes' 2025 Franchise Disclosure Document, the Guarantor's obligations remain intact despite any modifications, waivers, or extensions granted to the franchisee. Specifically, each Guarantor expressly agrees that the validity of the Guaranty and its obligations shall in no way be terminated, affected, or impaired by any waiver by Beehive Homes, or its successors or assigns, or the failure of Beehive Homes to enforce any of the terms, covenants, or conditions of the Franchise Agreement or this Guaranty, or the granting of any indulgence or extension of time to the Franchisee, all of which may be given or done without notice to the Guarantors. This means that even if Beehive Homes provides leniency or modifies the agreement with the franchisee, the guarantor is still responsible for fulfilling their obligations.

This provision is designed to protect Beehive Homes by ensuring that the guarantor remains liable for the franchisee's obligations, regardless of any changes made to the Franchise Agreement or any leniency extended to the franchisee. It is a standard practice in franchising to have such clauses to mitigate the risk for the franchisor. The guarantor cannot claim release from their obligations based on these changes or waivers.

For a prospective Beehive Homes franchisee, this implies that anyone acting as a guarantor (often family members or business partners) needs to understand that their commitment is unwavering unless explicitly released by Beehive Homes. The guarantor should carefully consider the financial and operational capabilities of the franchisee, as they will be held responsible even if the franchisee faces difficulties and Beehive Homes offers some flexibility. This clause underscores the importance of a guarantor fully understanding the risks and obligations they are undertaking.