What constitutes a 'maintenance default' for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
14.1. Events of Default. The following, subject to the notice requirements of Section 14.2 below, shall constitute "Events of Default":
- (a) Any monies payable by Franchisee to Franchisor shall not be paid as and when due and payable;
- (b) There shall be any failure or omission in the full and faithful performance and observance of any of the terms, conditions and limitations of this Agreement on Franchisee's part to be performed or observed (other than the payment of monies);
- (c) The occupancy of Franchisee's Home shall be less than 50% for thirty (30) or more consecutive days after once having attained an occupancy of greater than 50%;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
Based on the 2025 Beehive Homes Franchise Disclosure Document, a 'maintenance default' is not explicitly defined. However, the document outlines several 'Events of Default' that could be related to the upkeep and operation of the franchise.
Specifically, the FDD states that an event of default occurs if there is any failure or omission in the full and faithful performance and observance of any of the terms, conditions, and limitations of the Franchise Agreement on the franchisee's part to be performed or observed (other than the payment of monies). This broad clause could potentially encompass failures related to maintaining the Beehive Homes property according to the franchisor's standards, although it does not specifically mention 'maintenance'.
Additionally, the FDD specifies that if the occupancy of the Beehive Homes location falls below 50% for 30 or more consecutive days after previously exceeding 50% occupancy, it constitutes an event of default. While not directly a 'maintenance default,' this could be triggered by poor maintenance leading to decreased occupancy. A prospective franchisee should seek clarification from Beehive Homes on what specific actions or inactions related to property maintenance could trigger a default under the terms of the franchise agreement.