What is the scope of the Beehive Homes Guaranty regarding amendments to 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 covers the Franchise Agreement, including all applicable amendments, renewals, addenda, supplemental agreements, and assignments. This means that the Guarantor's obligations extend not only to the original Franchise Agreement but also to any changes or updates made to it over time.
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, other costs and fees, and attorneys' fees incurred in connection with the enforcement of the Franchise Agreement. The Guarantor also guarantees the performance of all other obligations of the Franchisee arising under the Franchise Agreement.
In practical terms, this means that if the Franchise Agreement is amended, for example, to increase royalty fees or impose new operational requirements, the Guarantor's obligations would extend to these changes. The Guarantor is essentially stepping into the shoes of the Franchisee and promising to ensure that all financial and operational obligations under the Franchise Agreement are met, regardless of any amendments or modifications made to the agreement during its term. This provides Beehive Homes with a significant level of security, as they have recourse to both the Franchisee and the Guarantor in the event of any default or breach of contract.