What constitutes an Event of Default under any other agreement between the Beehive Homes franchisee and the franchisor?

According to the 2025 Beehive Homes Franchise Disclosure Document, an Event of Default occurs if the franchisee defaults under any other Franchise Agreement or other agreement between the franchisee (or any affiliate) and Beehive Homes (or any of its affiliates).

This means that if a Beehive Homes franchisee has multiple franchise agreements or other agreements (such as a loan agreement or a supply agreement) with the franchisor, a default in any of those agreements can trigger a default under the primary franchise agreement. This clause is designed to protect Beehive Homes from franchisees who may be struggling financially or failing to meet their obligations across the board.

For a prospective Beehive Homes franchisee, this clause underscores the importance of carefully managing all aspects of their relationship with the franchisor and its affiliates. A franchisee should ensure they understand and can comply with all agreements they enter into with Beehive Homes to avoid triggering a default that could jeopardize their entire franchise operation. It is advisable to seek legal counsel to review all agreements and understand the potential consequences of default.