Does the Beehive Homes franchise agreement require a notice before declaring an Event of Default?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2.
Notice of Default.
Upon the occurrence of an Event of Default as defined in Section 14.1 above, Franchisor shall give Franchisee written Notice of Default which must be cured by Franchisee as of the date of the Notice if the Event of Default is one which is incapable of cure by Franchisee or within thirty (30) days after the date of the Notice, unless a longer period is required under the laws of the state in which the Home is located.
In addition, for an Event of Default under Section 14.1(a), Franchisor may also give written notice to any lender of Franchisee.
- 14.3.
Termination.
Upon the occurrence of any Event of Default and compliance with the notice requirements of Section 14.2 and upon Franchisee's failure to timely cure, Franchisor may terminate this Agreement by delivering to Franchisee a written Notice of Termination.
This Agreement shall not be terminated until the delivery of the Notice of Termination to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes is required to provide written notice to the franchisee upon the occurrence of an Event of Default. This notice must be cured either immediately if the default is something that can be immediately fixed, or within thirty days of the notice date. The timeframe for curing the default may be longer if required by the laws of the state where the Beehive Homes location is.
The FDD specifies that after an Event of Default, Beehive Homes must provide written Notice of Default to the franchisee. Following this notice, Beehive Homes can terminate the agreement if the franchisee fails to correct the issue within the given cure period. The franchise agreement cannot be terminated until the Notice of Termination is delivered to the franchisee.
Beehive Homes also has the option to notify any of the franchisee's lenders in writing if the Event of Default falls under section 14.1(a), which pertains to any monies payable by the franchisee to Beehive Homes not being paid when due.