What agreements must a Beehive Homes franchisee not be in default of to be eligible for renewal?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's renewal under Section 5.2 is subject to Franchisee's compliance with the following on the date of the notice of intent to renew and on the first day of the renewal Term: (i) Franchisee is not in default of any provision of this Agreement or any other Franchise Agreement or any other agreement with Franchisor or its Affiliates to which the Franchisee is a party; (ii) Franchisee is directly or indirectly the owner of the Home and will be for the renewal Term; (iii) Franchisee executes at least three (3) months prior to the first day of the renewal Term the then current form of Franchise Agreement being used by Franchisor, which Franchise Agreement may contain materially different terms from those contained in this Agreement; and (iv) Franchisee, its Home, equipment and procedures meet the current Standards applicable to new franchisees.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee must not be in default of several agreements to be eligible for renewal. Specifically, the franchisee must not be in default of any provision of the current Franchise Agreement.
In addition to the primary Franchise Agreement, the franchisee must also not be in default of any other Franchise Agreement they may have with Beehive Homes. This implies that if a franchisee operates multiple Beehive Homes locations under separate agreements, a default in one could impact the ability to renew others.
Furthermore, the franchisee must not be in default of any other agreement with Beehive Homes or its affiliates to which the franchisee is a party. This broad clause could encompass various types of agreements, such as loan agreements, supply agreements, or any other contractual obligations the franchisee has with Beehive Homes or its related entities. Meeting these conditions is crucial for a Beehive Homes franchisee to secure a renewal of their franchise.