What are the conditions to renewal for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2. Renewal Terms. Subject to the terms and conditions set forth in Section 5.3 below, Franchisee may renew its franchise upon the expiration of the initial Term or any renewal Term for additional consecutive ten (10) year Terms by giving Franchisor written notice of intent to renew at least six (6) months but not more than nine (9) months prior to the expiration date of the then current Term. Failure of the Franchisee to give such notice shall constitute an Election Not to Renew, unless the law of the state in which the Home is located provides otherwise. The Franchisee shall not be required to pay any renewal fee or additional franchise fee in connection with any renewal hereunder.
- 5.3. Conditions to Renewal. 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 can renew their franchise for additional ten-year terms if they meet certain conditions. To renew, the franchisee must provide written notice of their intent to renew to Beehive Homes at least six months, but no more than nine months, before the current term expires. Failing to provide this notice constitutes an election not to renew, unless state law dictates otherwise. Importantly, Beehive Homes does not require any renewal fee or additional franchise fee for renewals.
However, the renewal is contingent upon the franchisee's compliance with specific conditions, both when they provide the notice of intent to renew and on the first day of the new term. First, the franchisee must not be in default of any agreement with Beehive Homes or its affiliates, including the franchise agreement itself or any other related agreements. Second, the franchisee must directly or indirectly own the Home throughout the renewal term.
Third, the franchisee must execute the then-current form of the Franchise Agreement at least three months before the renewal term begins. This new agreement may contain significantly different terms than the original agreement, which is a crucial point for franchisees to consider. Finally, the franchisee's Home, equipment, and procedures must meet the standards applicable to new franchisees at the time of renewal. This ensures that all Beehive Homes locations maintain consistent standards.
These conditions are fairly standard in franchising, as franchisors want to ensure that franchisees are in good standing and maintaining brand standards before allowing them to continue operating under the brand name. The potential for materially different terms in the renewal agreement is something a franchisee should carefully evaluate with legal counsel to understand any new obligations or changes to their rights.