When is the Beehive Homes Franchise Agreement officially terminated?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
V. TERM AND RENEWAL
- 5.1. Initial Term. This Agreement shall have an initial Term commencing on the Effective Date hereof and ending on the last day of the calendar month which is ten (10) years after the calendar month in which Franchise Royalties are first due under this Agreement, unless terminated at an earlier date as provided herein.
- 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;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the initial term of the Franchise Agreement commences on the effective date and extends until the last day of the calendar month that is ten years after the month when franchise royalties first become due, unless terminated earlier as specified in the agreement.
A franchisee has the option to renew the franchise for additional ten-year terms, provided they meet certain conditions. To renew, the franchisee must provide written notice of their intent to renew to Beehive Homes at least six months, but no more than nine months, before the current term expires. Failing to provide this notice constitutes an election not to renew, unless state law dictates otherwise. No renewal fee or additional franchise fee is required for any renewal.
If a franchisee elects not to renew, the Franchise Agreement does not expire immediately. Instead, it continues on a month-to-month basis until Beehive Homes terminates it by providing the franchisee with a written termination notice at least 30 days before the termination date. This provides a transition period, but ultimately, Beehive Homes retains the right to terminate the agreement with proper notice.