Does the Beehive Homes Guaranty specify any minimum financial performance levels for 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)
The 2025 Beehive Homes Franchise Disclosure Document (FDD) outlines the obligations of the Guarantor but does not specify any minimum financial performance levels for the franchisee in the Guaranty and Assumption of Obligations under the Franchise Agreement. The Guaranty primarily focuses on ensuring the full and prompt payment of all sums owed by the franchisee to Beehive Homes and the performance of all other obligations under the Franchise Agreement.
The Guarantor is responsible for covering all fees and charges, interest, default interest, other costs and fees, and attorneys' fees related to enforcing the Franchise Agreement. The Guaranty is primary, meaning the Guarantor must immediately fulfill all payment and performance obligations upon Beehive Homes' request.
While the Guaranty ensures financial and operational compliance, it does not set specific financial targets or benchmarks for the franchisee's Beehive Homes location. A prospective franchisee should review the Franchise Agreement itself and discuss with Beehive Homes what financial performance expectations exist outside of the Guaranty.