What happens if the Beehive Homes Franchisor requests payment from the Guarantor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ER FRANCHISE AGREEMENT**
| 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. | ||
-
- Waivers of Certain Rights and Defenses. Each Guarantor waives: (a) any right or claim that Guarantor may have to require that an action be brought against Franchisee or any other person as a condition of Guarantor's liability under this Guaranty;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guarantor is obligated to make immediate payment in full of all amounts due to Beehive Homes and its affiliates under the Franchise Agreement if requested by Beehive Homes. The Guarantor also must perform every obligation to Beehive Homes and its affiliates as outlined in the Franchise Agreement. This guarantee is primary, meaning Beehive Homes can seek payment directly from the Guarantor without first pursuing the Franchisee.
Furthermore, the Guarantor must provide complete and current financial information to Beehive Homes upon request, along with copies of all deeds showing the Guarantor as a direct or indirect owner of the Location and Home. The Guarantor also consents to Beehive Homes recording a notice of its interest in the Location and Home with the County Recorder. The Guarantor is responsible for covering all attorneys' fees, costs, and expenses incurred during any collection attempts or negotiations related to the obligations guaranteed or in enforcing the Guaranty against the Franchisee or Guarantor.
The Guarantor also agrees not to transfer any interest in the Location or the Home during the term of the Guaranty without Beehive Homes' written consent. Additionally, Articles XII, XIII, and XIV of the Franchise Agreement apply to the Home and Location as if the Guarantor were the Franchisee. The Guarantor represents and warrants that the ownership of the Franchisee and its Affiliates is accurately represented in the Franchise Agreement and that the Franchisee is the sole owner of the Location and the Home, and must notify Beehive Homes of any changes in ownership.
In the event that Beehive Homes needs to send a notice to the Guarantor, it will be sent to the address of the Franchisee as set forth in the Franchise Agreement, unless the Guarantor provides a different address in writing. If there is more than one Guarantor, any reference to "Guarantor" means any one or all Guarantors, and each Guarantor's obligations are joint and several. The Guarantor's obligations under the Guaranty will not be terminated, affected, or impaired by any waiver by Beehive Homes or failure to enforce any rights.