Must a Beehive Homes franchisee meet current standards for new franchisees to renew?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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; (ii) Franchisee is directly or indirectly the owner of the Home and will be for the renewal Term; (iii) Franchisee executes at least three (3) months prior to the first day of the renewal Term the then current form of Franchise Agreement being used by Franchisor, which Franchise Agreement may contain materially different terms from those contained in this Agreement; and (iv) Franchisee, its Home, equipment and procedures meet the current Standards applicable to new franchisees.
- 5.4. Non-Renewal. If Franchisee makes an Election Not to Renew as provided in 5.2 above, this Agreement shall not expire but shall continue in full force and effect on a month-tomonth basis until terminated by Franchisor by delivery to Franchisee of a written notice of termination at least thirty (30) days prior to the date of such termination.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, a franchisee must meet the current standards applicable to new franchisees to renew their franchise agreement. Specifically, Section 5.3 outlines the conditions to renewal, stating that on both the date of the notice of intent to renew and the first day of the renewal term, the franchisee's Home, equipment, and procedures must meet the standards then applicable to new franchisees.
This requirement means that franchisees need to ensure their Beehive Homes location remains up-to-date with any changes to the brand's standards over time. These standards cover various aspects of the business, including the Home's physical condition, the equipment used, and the operational procedures in place. Failing to meet these evolving standards could prevent a franchisee from renewing their agreement, effectively ending their ability to operate under the Beehive Homes brand.
Furthermore, the renewal is contingent upon the franchisee not being in default of any agreement with Beehive Homes or its affiliates, maintaining ownership of the Home, and executing the then-current form of the Franchise Agreement. This new agreement may contain materially different terms from the original, adding another layer of complexity to the renewal process. The franchisee must agree to these potentially different terms to secure the renewal.
In the event a franchisee chooses not to renew, the agreement does not immediately expire. Instead, it continues on a month-to-month basis until Beehive Homes terminates it with a 30-day written notice. This provides a transition period, but ultimately the franchisee loses the right to operate under the Beehive Homes system if they do not meet the renewal conditions or choose not to renew.