What is the relationship between the Beehive Homes Guaranty and the Franchise Agreement?
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)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guaranty is directly linked to the Franchise Agreement. The Guaranty is provided as an inducement for Beehive Homes to execute the Franchise Agreement.
The Guarantor(s) agree to guarantee the franchisee's obligations under the Franchise Agreement. This includes ensuring the full and prompt payment of all sums owed by the franchisee to Beehive Homes and its affiliates. These sums include all fees and charges, interest, default interest, other costs and fees, and attorneys' fees related to enforcing the Franchise Agreement. The Guaranty also covers the performance of all other obligations of the franchisee under the Franchise Agreement.
The Guaranty is a primary obligation of the Guarantor, meaning that upon Beehive Homes' request, the Guarantor must immediately pay all amounts due and owing under the Franchise Agreement and fulfill all obligations. This ensures that Beehive Homes has a direct recourse to the Guarantor for the franchisee's financial and performance responsibilities, providing an additional layer of security for Beehive Homes.