Is the Beehive Homes franchise agreement considered personal to the franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- Assignor agrees to remain personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, and is not released from any obligations to Bee Hive Homes by this Assignment. After the date of this Assignment, all references to Franchisee in the Franchise Agreement shall refer to both Assignor and Assignee both jointly and severally.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the franchise agreement carries personal obligations for the franchisee, even after assignment. Specifically, if the franchise agreement is assigned to another party, the original franchisee (Assignor) remains personally bound by the terms of the agreement.
This means that even after transferring the franchise to someone else (the Assignee), the original franchisee is still liable for any breaches of the agreement, whether they involve monetary obligations or specific actions that must be taken or avoided. The FDD states that all references to "Franchisee" in the Franchise Agreement shall refer to both Assignor and Assignee both jointly and severally.
This clause protects Beehive Homes by ensuring that the original franchisee remains accountable for the franchise's performance and adherence to the franchise agreement, even after it has been transferred to a new owner. A prospective franchisee should carefully consider this ongoing liability before deciding to assign their franchise, as they will continue to be responsible for the assignee's actions related to the franchise.