What is the deadline for a Beehive Homes franchisee to provide written notice of intent to renew their 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 who wishes to renew their franchise agreement must provide written notice to Beehive Homes at least six months, but no more than nine months, before the current term expires. The initial term of the agreement lasts for ten years, ending on the last day of the calendar month that follows ten years after the first franchise royalty payment was due.
Missing this renewal notification deadline results in an 'Election Not to Renew,' which means the franchise agreement will continue on a month-to-month basis. However, Beehive Homes retains the right to terminate the agreement with at least 30 days' written notice to the franchisee. Therefore, it is crucial for franchisees to mark their calendars and adhere to the notification window to maintain their franchise rights.
To successfully renew the franchise, the franchisee must also meet certain conditions at the time of the renewal notice and on the first day of the renewal term. These conditions include not being in default of any agreements with Beehive Homes, owning the Home directly or indirectly, executing the then-current form of the Franchise Agreement (which may have materially different terms), and ensuring that the Home, equipment, and procedures meet the current standards for new franchisees. Meeting these conditions ensures a smooth renewal process and continued operation of the Beehive Homes franchise.