What is the relationship between the Guarantor and the Franchisee regarding obligations to Beehive Homes?
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. | ||
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- 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, a Guarantor assumes significant responsibility for the Franchisee's obligations. The Guarantor personally, unconditionally, and irrevocably guarantees to Beehive Homes the full and prompt payment of all sums owed by the Franchisee. This includes all fees and charges, interest, default interest, costs, and attorneys' fees related to the Franchise Agreement. The Guarantor is also responsible for the performance of all other obligations of the Franchisee under the Franchise Agreement.
This Guaranty is primary, meaning Beehive Homes can seek payment directly from the Guarantor without first pursuing the Franchisee. The Guarantor must immediately pay all amounts due and owing to Beehive Homes and fulfill every obligation under the Franchise Agreement upon request. Additionally, the Guarantor must provide complete and current financial information to Beehive Homes upon request and consent to the recording of a notice of interest related to the location and home.
The Guarantor also agrees to cover all attorneys' fees, costs, and expenses incurred in any collection efforts or negotiations related to the guaranteed obligations or in enforcing the Guaranty against either the Franchisee or the Guarantor. Furthermore, the Guarantor cannot convey or transfer any interest in the location or the home during the term of the Guaranty without Beehive Homes' express written consent. Articles XII, XIII, and XIV of the Franchise Agreement apply to the home and location as if the Guarantor were the Franchisee.
In essence, the Guarantor acts as a safeguard for Beehive Homes, ensuring that all financial and operational obligations are met, even if the Franchisee fails to do so. This arrangement mitigates risk for Beehive Homes but places a substantial burden on the Guarantor, who becomes directly liable for the Franchisee's debts and actions related to the franchise.