What is the cure period for nonpayment of fees by a Beehive Homes franchisee?
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 |
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 a default of nonpayment of fees. This information is detailed in Item 17, which outlines the terms for renewal, termination, transfer, and dispute resolution within the franchise agreement.
This 30-day cure period means that if a Beehive Homes franchisee fails to pay required fees, they have a one-month window to rectify the situation before Beehive Homes can terminate the franchise agreement. This provides a franchisee with an opportunity to address financial difficulties or errors in payment without immediately risking the loss of their franchise.
Cure periods are a fairly standard practice in franchising, offering franchisees a chance to correct certain defaults. However, it's important to note that this cure period applies specifically to nonpayment of fees and instances where performance of the franchise agreement can be completed. Other types of defaults, such as bankruptcy, unauthorized transfers, abandonment, or trademark misuse, are considered non-curable and can lead to immediate termination.
Prospective Beehive Homes franchisees should carefully review Section 14.1 of the franchise agreement, as referenced in Item 17, to fully understand the circumstances under which termination can occur and the specific cure periods applicable to different types of defaults. Understanding these terms is crucial for maintaining a healthy and compliant franchise relationship with Beehive Homes.