Does the Beehive Homes Guaranty specify any financial thresholds that trigger the Guarantor's obligations?
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)
The 2025 Beehive Homes Franchise Disclosure Document (FDD) outlines the obligations of the Guarantor under the Guaranty and Assumption of Obligations Under Franchise Agreement. According to the FDD, the Guarantor provides a guaranty for "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." This means the guarantor is responsible for all financial obligations of the franchisee to Beehive Homes, without specifying a particular threshold that would trigger this obligation.
Furthermore, the Guarantor also guarantees "the performance of all other obligations of Franchisee arising under the Franchise Agreement". This extends the Guarantor's responsibility beyond just monetary obligations to include all responsibilities outlined in the Franchise Agreement. The guaranty is considered primary, meaning Beehive Homes can seek payment directly from the Guarantor without first pursuing the franchisee.
In practical terms, this implies that anyone acting as a Guarantor for a Beehive Homes franchise takes on a significant financial and operational risk. They are essentially promising to cover all debts and ensure all responsibilities of the franchisee are met. Prospective franchisees should carefully consider the implications of this Guaranty and fully understand the financial and operational commitments they are making, as well as the potential liabilities of their Guarantor. It would be prudent to seek legal and financial advice before entering into such an agreement.