Where in the Beehive Homes Franchise Agreement can I find the meaning of 'Events of Default'?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.7. "Events of Default" has the meaning set forth in Section 14.1 herein.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the definition of "Events of Default" is found in Section 14.1 of the franchise agreement. However, section 2.7 of the agreement also defines "Events of Default" as having the meaning set forth in Section 14.1.
Section 14.1 lists several occurrences that constitute an "Event of Default." These include failing to pay monies owed to Beehive Homes, any failure to perform or observe the terms of the agreement, the occupancy of the franchisee's home being less than 50% for 30 or more consecutive days after initially exceeding 50% occupancy, and the franchisee effecting an incident that could materially impair the goodwill associated with the Beehive Homes' names and marks.
Additional events of default include committing any act that constitutes good cause for termination under state law, engaging in any unauthorized transfer as detailed in Section 13.5 of the agreement, or the occurrence of an Event of Default under any other agreement between the franchisee (or their affiliates) and Beehive Homes (or its affiliates). Understanding these events is crucial for a prospective franchisee to avoid potential termination of their franchise agreement.