What does the Beehive Homes Guarantor personally guarantee to the Franchisor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ER FRANCHISE 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"). 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. | ||
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- Waivers of Certain Rights and Defenses. Each Guarantor waives: (a) any right or claim that Guarantor may have to require that an action be brought against Franchisee or any other person as a condition of Guarantor's liability under this Guaranty;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guarantor provides a personal, unconditional, and irrevocable guarantee to the Franchisor. This guarantee covers (a) the full and prompt payment of all sums owed by the Franchisee to Beehive Homes and its Affiliates under the Franchise Agreement, including all fees, charges, interest, default interest, costs, and attorneys' fees related to enforcing the Franchise Agreement. It also covers (b) the performance of all other obligations of the Franchisee arising under the Franchise Agreement.
This means that the Guarantor is essentially acting as a co-signer for the Franchisee's obligations to Beehive Homes. If the Franchisee fails to pay what is owed or fails to fulfill any other obligations under the Franchise Agreement, Beehive Homes can seek payment or performance directly from the Guarantor. The Guarantor's obligation is primary, meaning Beehive Homes does not have to first pursue the Franchisee before seeking recourse from the Guarantor.
For a prospective Beehive Homes franchisee, this requirement means that someone with sufficient financial resources and a willingness to be held responsible for the franchisee's debts and obligations must sign the Guaranty. This could be a spouse, family member, or business partner. The Guarantor should carefully review the Franchise Agreement and the Guaranty to fully understand the scope of the obligations they are guaranteeing, as they could be held liable for significant sums of money and other responsibilities if the Franchisee defaults.
Furthermore, the Guarantor must provide complete and current financial information to Beehive Homes upon request, copies of deeds showing ownership of the Location and Home, and any other reasonably requested information. The Guarantor also consents to Beehive Homes recording a notice of its interest in the Location and Home. The Guarantor agrees not to transfer any interest in the Location or Home without Beehive Homes' written consent and agrees that Articles XII, XIII, and XIV of the Franchise Agreement apply to the Home and Location as though the Guarantor were the Franchisee. The Guarantor also warrants the accuracy of the ownership information provided in the Franchise Agreement and must notify Beehive Homes of any changes in ownership.