Where can I find the meaning of 'Events of Default' in the Beehive Homes Franchise Agreement?

According to Beehive Homes' 2025 Franchise Disclosure Document, the definition of "Events of Default" can be found in Section 14.1 of the Franchise Agreement. Item 23, Section II, 2.7 of the agreement states that the definition of "Events of Default" is set forth in Section 14.1. This section outlines specific circumstances that would constitute a breach of the agreement by the franchisee.

These "Events of Default" range from failure to make payments to Beehive Homes to not maintaining a minimum occupancy rate of 50% for 30 or more consecutive days after exceeding that occupancy rate. Other events include filing for bankruptcy, actions that may impair the goodwill associated with Beehive Homes' brand, or engaging in unauthorized transfers of the franchise. Committing any act that constitutes good cause for termination under the laws of the state where the Home is located also constitutes an event of default.

Understanding what constitutes an "Event of Default" is crucial for a prospective Beehive Homes franchisee. It highlights the responsibilities and potential pitfalls that could lead to termination of the franchise agreement. Franchisees should carefully review Section 14.1 to fully understand their obligations and the potential consequences of non-compliance. This knowledge can help franchisees avoid actions that could jeopardize their investment and the franchise agreement.