What advance notice is required for a Beehive Homes franchisee to renew or extend the franchise term?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 25–27)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, a franchisee must provide three to nine months advance notice to renew or extend the franchise term. In addition to providing the required notice, the franchisee must be in good standing and must sign the current form of the franchise agreement.
It is important to note that the terms and conditions of the renewed franchise agreement may differ materially from the initial agreement. This means that certain fees, obligations, or operational requirements could change upon renewal. A prospective franchisee should carefully review the renewal terms outlined in the current franchise agreement and discuss any potential changes with Beehive Homes before making a decision to renew.
Advance notice requirements are typical in franchising, allowing the franchisor to plan for the future of the location. The three-to-nine-month window provides Beehive Homes with sufficient time to evaluate the franchisee's performance, negotiate renewal terms, and prepare for a potential change in ownership if the franchisee chooses not to renew. The franchisee also has time to consider the terms of the new agreement.