What is the Guarantor's responsibility regarding payments under the Beehive Homes Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ER FRANCHISE AGREEMENT**
| THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS UNDER FRANCHISE | ||
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| 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; (b) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of Guarantor's execution of and performance under this Guaranty; (c) any law or statute which requires that Franchisor make demand on, assert claims against or collect from Franchisee or any others, foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any others before making any demand on, collecting from or taking any action against Guarantor under or with respect to this Guaranty; (d) any right or claim Guarantor may have that a release or discharge of Franchisee under the Franchise Agreement is a release or discharge of Guarantors under the Franchise Agreement or this Guaranty; and (e) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
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- Each of the Guarantors covenants and agrees as follows:
a. Each Guarantor shall be bound by each and every condition and term contained in the Franchise Agreement, including, but not by way of limitation, all promises, covenants, representations and warranties of Franchisee, as though each Guarantor were a party to the Franchise Agreement, specifically, but not by way of limitation, the provisions of the Franchise Agreement relating to Confidential Information and Restrictive Covenants. This Guaranty shall continue in favor of Franchisor notwithstanding any extension, modification, alteration, renewal, termination or expiration of the Franchise Agreement, and notwithstanding any assignment of the Franchise Agreement, with or without the Franchisor's consent. No extension, modification, alteration, renewal, termination, expiration or assignment of the Franchise Agreement shall in any manner release or discharge the Guarantors, and each of the Guarantors consents to any such extension, modification, alteration, renewal, termination, expiration or assignment.
b.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guarantor plays a crucial role in ensuring the financial and operational obligations of the franchisee are met. The Guarantor's responsibilities are outlined in a document called "THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS UNDER FRANCHISE AGREEMENT".
The Guarantor unconditionally guarantees the full and prompt payment of all sums owed by the franchisee to Beehive Homes, including all fees and charges, interest, default interest, and attorneys' fees incurred during the enforcement of the Franchise Agreement. This also extends to the performance of all other obligations of the franchisee under the Franchise Agreement. This Guaranty is considered primary, meaning that upon Beehive Homes' request, the Guarantor must immediately pay all amounts due and owing and fulfill every obligation.
Furthermore, each Guarantor is required to provide complete and current financial information to Beehive Homes upon request, along with copies of deeds showing direct or indirect ownership of the Location and Home. They must also provide any other information reasonably requested by Beehive Homes. The Guarantor consents to Beehive Homes recording a notice of its interest in the Location and Home with the County Recorder. Additionally, the Guarantor is responsible for covering all attorneys' fees, costs, and expenses related to the collection or attempted collection of the Guaranty, or in enforcing the Guaranty against the franchisee or Guarantor.
Finally, the Guarantor agrees not to transfer any interest in the Location or the Home during the term of the Guaranty without written consent from Beehive Homes. They also agree that Articles XII, XIII, and XIV of the Franchise Agreement apply to the Home and Location as if the Guarantor were the franchisee. The Guarantor represents and warrants the accuracy of the ownership details of the franchisee and covenants to notify Beehive Homes of any changes in such ownership.