Can the Beehive Homes franchise agreement be modified?
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 |
| i. YOUR obligations on termination/nonrenewal | Section 14.4; 14.5; 14.6 & 14.7 | pay amounts due; sell Home to Franchisor |
| j. Assignment of contract by | Section 13.1 | Assignee reasonably willing and able to |
| US | perform | |
| k. "Transfer" by YOU - | Section 2.20; | includes transfer of contract or assets and |
| defined | 13.2 | change in ownership |
| l. OUR approval of transfer | Section 13.4 | prior written approval but not |
| by YOU | unreasonably withheld | |
| m. Conditions for OUR | Section 13.4 | payment of fees, new franchise |
| approval of transfer | agreement, training | |
| n. OUR right of first refusal | Section 13.6 | WE can match any offer |
| to acquire YOUR business | ||
| o. OUR option to purchase YOUR business | Section 14.5 | WE can purchase YOUR business for the initial cost of the real property and the book value of the personal property upon an Event of Default |
| p. YOUR death or disability | Section 13.3 | transfer must generally be approved within 6 months. Please refer to the state cover page, if any, accompanying this Franchise Disclosure Document for any special provisions applicable to YOUR state |
| q. Non-competition | Section 12.1 | no involvement in competing business |
| covenants during the term of | ||
| the franchise | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 12.1 | no involvement in competing business for three years. Please refer to the state cover page, if any, accompanying this Franchise Disclosure Document for any special provisions applicable to YOUR state. |
| s. Modification of the | Section 18.14 | only in writing |
| agreement | ||
| t. Integration/merger clause | Section 18.14 | Only the terms of the franchise agreement are binding. Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. Notwithstanding the foregoing, no provision in any franchise agreement is intended to disclaim the express representations made in this Franchise Disclosure Document. |
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, the franchise agreement can be modified, but only if the modification is made in writing. This is a fairly standard clause in franchise agreements, ensuring that any changes to the original contract are documented and agreed upon by both Beehive Homes and the franchisee, preventing disputes based on verbal agreements or misunderstandings.
This requirement for written modifications protects both the franchisee and Beehive Homes. It provides a clear record of any changes to the agreement, which can be crucial in resolving disagreements or clarifying obligations. Without such a clause, it would be difficult to prove that a modification was actually agreed upon.
Prospective Beehive Homes franchisees should be aware of this provision and ensure that any modifications they agree to are properly documented in writing and signed by both parties. This will help avoid potential conflicts and ensure that both parties are clear on their respective rights and responsibilities under the franchise agreement. Franchisees should also be aware of the integration/merger clause, which states that only the terms of the franchise agreement are binding, and any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. However, the clause clarifies that it does not disclaim the express representations made in the Franchise Disclosure Document.