Does the Beehive Homes Guaranty continue if the Franchise Agreement is extended, modified, or assigned?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | ||
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guaranty provided by the guarantor extends to all applicable amendments, renewals, addenda, supplemental agreements, and assignments of the Franchise Agreement. This means that the Guarantor's obligations remain in effect even if the Franchise Agreement is altered, renewed, or transferred to another party. The Guarantor is bound to ensure the franchisee's full and prompt payment of all sums owed to Beehive Homes and the performance of all other obligations under the Franchise Agreement.
This continuation of the Guaranty protects Beehive Homes by ensuring that there is always a party responsible for the financial and operational obligations of the franchise, regardless of changes to the original agreement or ownership. The guarantor cannot claim that their obligations are voided due to modifications or assignments of the agreement. This provides Beehive Homes with a consistent and reliable source of recourse in case of franchisee default.
For a prospective Beehive Homes franchisee, this means that if they are required to have a guarantor for their franchise agreement, that guarantor's obligations will persist through any changes to the agreement, including renewals or assignments. Therefore, it is crucial for both the franchisee and the guarantor to fully understand the terms of the Franchise Agreement and the Guaranty, as their responsibilities will extend beyond the initial agreement and remain in effect throughout the life of the franchise relationship.