Are Beehive Homes Guarantors bound by the terms of the Franchise Agreement, including confidentiality and restrictive covenants?

According to Beehive Homes' 2025 Franchise Disclosure Document, Guarantors are bound by specific terms of the Franchise Agreement. Specifically, Articles XII, XIII, and XIV of the Franchise Agreement apply to the Home and the Location as though the Guarantor were the Franchisee. This means that the Guarantor must adhere to the same operational standards, legal compliance, and brand protection measures as the franchisee.

This has significant implications for anyone acting as a Guarantor for a Beehive Homes franchise. They are not merely providing a financial guarantee; they are also agreeing to be bound by key provisions of the Franchise Agreement. This includes maintaining confidentiality regarding Beehive Homes' proprietary information and adhering to any restrictive covenants that prevent them from engaging in competitive activities.

For a prospective franchisee, this underscores the importance of carefully selecting and informing any Guarantors about their responsibilities. The Guarantor should fully understand the obligations they are undertaking, as a breach of these terms can have legal and financial repercussions for both the Guarantor and the franchisee. This is a notable aspect of the Beehive Homes franchise agreement, as it extends certain key obligations beyond the franchisee to the Guarantor.