Who pays the attorneys' fees and costs associated with collecting on the Beehive Homes Guaranty?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor unconditionally agrees to pay all attorneys' fees and all costs and other expenses incurred in any collection or attempted collection of this Guaranty or in any negotiations relative to the obligations guaranteed or in enforcing this Guaranty against Franchisee or Guarantor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the guarantor is responsible for covering all attorneys' fees, costs, and other expenses incurred during any collection or attempted collection related to the Guaranty. This also applies to any negotiations concerning the obligations guaranteed or when enforcing the Guaranty against either the franchisee or the guarantor.
This means that if Beehive Homes has to take legal action to enforce the Guaranty, the guarantor will be responsible for paying Beehive Homes' legal fees and associated costs. This could include expenses related to pursuing the collection, negotiating settlements, or taking action against the franchisee or guarantor to ensure the obligations are met.
For a prospective Beehive Homes franchisee, this highlights the importance of understanding the full scope of the Guaranty and the potential financial obligations it entails. The guarantor should be fully aware that they could be responsible for significant legal expenses if the franchisee fails to meet their obligations and Beehive Homes needs to enforce the Guaranty.