What is the scope of 'Obligations' covered by 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' 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 two primary areas. First, it guarantees the full and prompt payment of all sums owed by the franchisee to Beehive Homes and its affiliates under the Franchise Agreement. This includes, but isn't limited to, all fees and charges, interest, default interest, and all other costs and attorneys' fees incurred in connection with enforcing the Franchise Agreement.
Second, the Guaranty extends to the performance of all other obligations of the franchisee arising under the Franchise Agreement. These 'Obligations' encompass the franchisee's duties and responsibilities as outlined in the agreement.
In practical terms, this means that the guarantor is on the hook for both the franchisee's financial and operational responsibilities. The guarantor must be prepared to cover any unpaid amounts and ensure the franchisee adheres to all requirements specified in the Franchise Agreement. This Guaranty is primary, meaning Beehive Homes can seek payment or performance directly from the guarantor without first pursuing the franchisee. Prospective franchisees should carefully consider the implications of this Guaranty and ensure their guarantor fully understands the extent of their obligations.