What is the cure period for a Beehive Homes franchisee's curable defaults?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
| d. Termination by YOU | Not Applicable | Not Applicable |
| e. Termination by US without | Not Applicable | Not Applicable |
| cause | ||
| f. Termination by US with cause | Section 14 | WE can terminate if YOU commit certain events of default or other breaches of the Franchise Agreement |
| g. "Cause" defined - curable defaults | Section 14.1 | YOU have 30 days to cure: nonpayment of fees, nonperformance of franchise agreement where performance can be completed |
| h. “Cause” defined - non- curable defaults | Section 14.1 | non-curable defaults: bankruptcy (may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, trademark misuse |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 25–27)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, a franchisee has 30 days to cure certain defaults. Specifically, this 30-day cure period applies to nonpayment of fees and nonperformance of the franchise agreement where the performance can be completed.
It is important for prospective Beehive Homes franchisees to understand what constitutes a curable default and the steps required to rectify the situation within the given timeframe. Failure to cure a default within 30 days could lead to termination of the franchise agreement.
Certain defaults are considered non-curable, such as bankruptcy, unauthorized transfers, abandonment, and trademark misuse, which would result in immediate termination. Therefore, understanding the distinction between curable and non-curable defaults is crucial for a Beehive Homes franchisee to maintain compliance and avoid termination of the franchise agreement.