Is a Beehive Homes franchisee required to cease all operations at the Location upon termination or expiration?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nation or Expiration. Upon occurrence of an Event of Default, termination, Election Not to Renew or expiration of this Agreement for any reason, the Franchisee shall cease to be a licensed franchisee of Franchisor and Franchisee hereby covenants:
- (a) To pay to Franchisor all fees and other charges owed or accrued to Franchisor on or before the first day of the month following the date of termination or expiration;
- (b) To pay to Franchisor a cancellation fee in the amount of Ten Thousand Dollars ($10,000.00);
- (c) Not to hold itself out as a franchisee of Franchisor and to cease all use of the Names and Marks, Trade Secrets and Copyrighted Materials;
- (d) To deliver and surrender up to Franchisor each and all of the Names and Marks, and any physical objects bearing or containing any of the Names and Marks, or, at
Franchisor's election, to obliterate or destroy any Names and Marks in Franchisee's possession;
- (e) To take all necessary steps to disassociate itself from Franchisor, including, but not limited to, the removal of signs, destruction of letterhead, disconnecting of all telephone numbers listed under any of the Names or Marks or under any confusingly similar name and, upon Franchisor's request, transferringallsuch numbers and listings to Franchisor or its designee;
- (f) To take such action as shall be necessary to amend or cancel any assumed name, business name or equivalent registration which contains any Names or Marks;
- (g) To cease all operations at the Location;
- (h) To furnish evidence satisfactoryto Franchisor of compliancewith this Section within the thirty (30) calendar days after the termination or expiration under this Agreement; and
- (i) If Franchisee fails to promptly complete any of the foregoing steps, Franchisee hereby irrevocably appoints Franchisor as its attorney-in-fact to complete the foregoing steps for and on the beh
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, a franchisee is required to cease all operations at the location upon termination or expiration of the franchise agreement. Specifically, upon the occurrence of an Event of Default, termination, Election Not to Renew, or expiration of the agreement, the franchisee must take several actions to disassociate from Beehive Homes.
These actions include ceasing to operate as a Beehive Homes franchisee and discontinuing all use of the brand's names, marks, trade secrets, and copyrighted materials. The franchisee must also deliver or destroy any items bearing Beehive Homes' names and marks. Furthermore, the franchisee is obligated to remove signs, destroy letterhead, and disconnect telephone numbers associated with the Beehive Homes brand, transferring these to the franchisor if requested.
Additionally, the franchisee must amend or cancel any assumed name or business name registrations that include Beehive Homes' names or marks. The franchisee is required to provide evidence of compliance with these requirements within 30 calendar days after termination or expiration. If the franchisee fails to comply, Beehive Homes is irrevocably appointed as the franchisee's attorney-in-fact to complete these steps on their behalf. These stipulations ensure a clean break between the franchisee and the Beehive Homes brand, protecting the brand's integrity and reputation.