Who can request payment from the Guarantor under the Beehive Homes Guaranty?
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' fe |
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Franchisor, Bee Hive Homes, Inc., and its successors and assigns, can request payment from the Guarantor under the Guaranty. The Guarantor personally, unconditionally, and irrevocably guarantees to the Franchisor the full and prompt payment of all sums owed by the Franchisee. This includes all fees and charges, interest, default interest, all other costs and fees, and attorneys' fees incurred in connection with the enforcement of the Franchise Agreement.
This means that if a Beehive Homes franchisee fails to meet their financial obligations under the Franchise Agreement, Beehive Homes has the right to seek payment directly from the Guarantor. The Guarantor's obligation is primary, meaning Beehive Homes does not necessarily have to pursue the franchisee first before seeking payment from the Guarantor. This provides Beehive Homes with a direct avenue to recover owed amounts, enhancing their financial security.
For a prospective Beehive Homes franchisee, this highlights the importance of understanding the Guaranty and the financial responsibilities it entails. If someone is acting as a Guarantor, they must be fully aware of the franchisee's financial obligations and their own potential liability. It is also important to note that the Guaranty extends to Beehive Homes' successors and assigns, meaning that if the franchise is sold or transferred, the Guaranty remains in effect for the new franchisor.