What does the Beehive Homes Guaranty cover regarding payments owed by the Franchisee?
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 ensures the full and prompt payment of all sums owed by the Franchisee to Beehive Homes and its affiliates. This includes all fees and charges, interest, default interest, and all other costs and attorneys' fees incurred in connection with the enforcement of the Franchise Agreement. The Guaranty also covers the performance of all other obligations of the Franchisee arising under the Franchise Agreement.
In practical terms, this means that if a Beehive Homes franchisee fails to make required payments or meet other obligations under the Franchise Agreement, the guarantor is personally liable for those debts and obligations. The guarantor's responsibility is primary, meaning Beehive Homes can seek payment directly from the guarantor without first pursuing the franchisee. This arrangement reduces the risk for Beehive Homes, as it has an additional party responsible for ensuring the franchisee's financial and contractual commitments are met.
The Guaranty is a significant commitment, as the guarantor is essentially stepping into the shoes of the franchisee regarding financial and contractual performance. Prospective guarantors should carefully review the Franchise Agreement and understand the full scope of the obligations they are guaranteeing. They should also assess the franchisee's financial stability and business acumen to evaluate the likelihood of the franchisee meeting their obligations. The guarantor should also seek independent legal and financial advice before signing the Guaranty to fully understand the implications of their commitment.
Beehive Homes also requires each Guarantor to provide complete and current financial information as reasonably requested, copies of all deeds showing the Guarantor as a direct or indirect owner of the Location and Home, and all other information about the Guarantor that Beehive Homes may reasonably request. Each Guarantor with a direct or indirect ownership interest in the Location and Home consents to Beehive Homes recording a notice of its interest pursuant to the Franchise Agreement and the Guaranty in the office of the County Recorder in and for the County in which the Location and Home are located. Each Guarantor also agrees to pay all attorneys' fees and all costs and other expenses incurred in any collection or attempted collection of the Guaranty or in any negotiations relative to the obligations guaranteed or in enforcing the Guaranty against Franchisee or Guarantor. Each Guarantor covenants not to convey or transfer any right, title, or interest in or to the Location or the Home during the term of the Guaranty, without the express written consent of Beehive Homes.