What is the amount of the cancellation fee that a Beehive Homes franchisee must pay upon termination or expiration?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nation to Franchisee.
- 14.4. Obligations of Franchisee Upon the Occurrence of an Event of Default, Termination or Expiration. Upon occurrence of an Event of Default, termination, Election Not to Renew or expiration of this Agreement for any reason, the Franchisee shall cease to be a licensed franchisee of Franchisor and Franchisee hereby covenants:
- (a) To pay to Franchisor all fees and other charges owed or accrued to Franchisor on or before the first day of the month following the date of termination or expiration;
- (b) To pay to Franchisor a cancellation fee in the amount of Ten Thousand
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee must pay a cancellation fee of $10,000 upon the occurrence of an event of default, termination, election not to renew, or expiration of the franchise agreement. This fee is in addition to any other outstanding fees or charges owed to Beehive Homes up to the date of termination or expiration.
This cancellation fee is a notable obligation for franchisees considering exiting the Beehive Homes system, whether through choice or due to default. It represents a significant cost that must be factored into any decision regarding the termination or non-renewal of the franchise agreement. Franchisees should be aware of this financial responsibility and plan accordingly.
It is important for prospective franchisees to fully understand the circumstances under which this fee is applied. They should also consider this fee when evaluating the overall financial implications of the Beehive Homes franchise agreement and compare it to similar fees charged by other franchises in the senior care industry.