Can the validity of the Beehive Homes Guaranty be affected by a waiver from the Franchisor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor expressly agrees that the validity of this Guaranty and its obligations shall in no way be terminated, affected or impaired by reason of any waiver by Franchisor, or its successors or assigns, or the failure of Franchisor to enforce any of the terms, covenants or conditions of the Franchise Agreement or this Guaranty, or the granting of any indulgence or extension of time to Franchisee, all of which may be given or done without notice to the Guarantors.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the validity of the Guaranty is not affected or terminated by any waiver from Beehive Homes. The Guaranty's obligations remain intact regardless of any waivers, failure to enforce terms, or granting of extensions to the franchisee.
Specifically, the Guarantor agrees that the validity of the Guaranty and its obligations will not be terminated, affected, or impaired due to any waiver by Beehive Homes or its successors or assigns. This also applies if Beehive Homes fails to enforce any terms, covenants, or conditions of the Franchise Agreement or the Guaranty, or if any indulgence or extension of time is granted to the franchisee. All of these actions can be taken without notice to the Guarantors.
This provision protects Beehive Homes by ensuring that the Guaranty remains in full force and effect, even if the company chooses to be lenient with the franchisee or does not strictly enforce all terms of the agreement. It also means that the Guarantor cannot claim that their obligations under the Guaranty are reduced or eliminated because of any actions or inactions by Beehive Homes. This is a standard clause in franchise agreements to ensure the franchisor's financial security.