Does the Beehive Homes Guaranty specify any limitations on the Franchisor's ability to assign the Guaranty?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guaranty does not limit Beehive Homes' ability to assign the Guaranty. The document states that the Guaranty continues even with any assignment of the Franchise Agreement, regardless of whether Beehive Homes consents to the assignment.
Specifically, the Guaranty remains in effect despite any extension, modification, alteration, renewal, termination, or expiration of the Franchise Agreement. This holds true whether or not Beehive Homes has given consent for the Franchise Agreement's assignment.
This clause protects Beehive Homes by ensuring that the obligations of the Guarantor remain intact even if the franchise changes hands or the terms of the agreement are altered. For a prospective franchisee, this means that any personal guarantees provided will continue to be enforceable by Beehive Homes, even if the franchise is sold or the agreement is modified.