What representation does each Beehive Homes Guarantor make regarding the ownership of the Franchisee and its Affiliates?

According to the 2025 Beehive Homes Franchise Disclosure Document, each Guarantor represents and warrants that the ownership of the Franchisee and its Affiliates, as detailed in the Franchise Agreement, is a true and accurate representation of such ownership. Additionally, the Guarantor represents that the Franchisee is the sole owner of the Location and the Home. This representation is a critical component of the agreement, ensuring that Beehive Homes has a clear understanding of the ownership structure of the franchise.

Furthermore, each Guarantor is obligated to notify Beehive Homes of any changes in the ownership of the Franchisee or its Affiliates. This ongoing obligation ensures that Beehive Homes remains informed about the current ownership structure throughout the term of the franchise agreement. This allows Beehive Homes to maintain accurate records and address any potential issues that may arise due to changes in ownership.

This requirement is typical in franchising, as franchisors need to know who controls and benefits from the franchise. By requiring a guarantee and representation about ownership, Beehive Homes aims to mitigate risks associated with undisclosed or unauthorized changes in ownership that could affect the operation and financial stability of the franchise. Prospective franchisees should carefully review and understand these obligations, as any misrepresentation or failure to report changes in ownership could have significant legal and financial consequences.