Does the Beehive Homes Guaranty cover obligations to the Franchisor's Affiliates?
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 does cover obligations to the Franchisor's Affiliates. Specifically, the Guaranty ensures the full and prompt payment of all sums owed by the franchisee to Beehive Homes and its affiliates under the Franchise Agreement. This includes all fees and charges, interest, default interest, costs, and attorneys' fees related to the Home.
Furthermore, the Guaranty extends to the performance of all other obligations of the franchisee arising under the Franchise Agreement to Beehive Homes and its affiliates. The Guaranty is primary, meaning the guarantor is obligated to make payments in full for all amounts due to Beehive Homes and its affiliates under the Franchise Agreement and to fulfill every obligation to them.
In practical terms, this means that if a Beehive Homes franchisee fails to meet their financial or operational obligations, the guarantor is responsible for ensuring these obligations are met, not only to Beehive Homes itself but also to any of its affiliated entities. This provision protects Beehive Homes and its affiliates from potential losses due to franchisee non-compliance and ensures that all parties receive the benefits and payments outlined in the Franchise Agreement.