What happens if a provision of the Beehive Homes Guaranty is determined to be unenforceable?

According to the 2025 Beehive Homes Franchise Disclosure Document, if a court of competent jurisdiction determines that any provision of the Guaranty is unenforceable, the remaining provisions of the Guaranty will still be considered effective. This means that even if one part of the Guaranty is found to be invalid, the rest of the agreement remains in force.

This clause protects Beehive Homes by ensuring that the entire Guaranty does not become void due to a single unenforceable provision. It allows the franchisor to still enforce the remaining obligations outlined in the Guaranty against the guarantor. This is a fairly standard clause in franchise agreements, as it mitigates the risk of the entire agreement being invalidated due to a technicality or legal challenge to one specific part.

For a prospective Beehive Homes franchisee, this means that they, and any guarantor, remain bound by the remaining enforceable terms of the Guaranty even if a specific provision is deemed unenforceable. It is important for franchisees and guarantors to understand the implications of the entire Guaranty, as it ensures the obligations to Beehive Homes are upheld to the fullest extent possible under the law.