What must the Beehive Homes franchisee do with the Trade Name if the agreement is terminated?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby agrees that if this Agreement is terminated for any reason, Franchisee shall immediately discontinue use of the Trade Name, as well as the Names and Marks.
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:
(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 behalf of the Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, if the franchise agreement is terminated for any reason, the franchisee must immediately stop using the Trade Name, as well as the Names and Marks associated with Beehive Homes. This means the franchisee can no longer operate under the Beehive Homes brand or use any of its trademarks.
In addition to discontinuing the use of the Trade Name and Marks, the franchisee must take several steps to disassociate themselves from Beehive Homes. This includes removing signs displaying the Beehive Homes name, destroying letterhead, and disconnecting telephone numbers listed under the Beehive Homes name or any confusingly similar name. Upon Beehive Homes' request, the franchisee must transfer these telephone numbers and listings to Beehive Homes or its designee.
The franchisee is also required to take action to amend or cancel any assumed name, business name, or equivalent registration that contains any of the Names or Marks associated with Beehive Homes. Furthermore, the franchisee must provide evidence satisfactory to Beehive Homes that they have complied with these requirements within 30 calendar days after the termination or expiration of the agreement. If the franchisee fails to complete these steps promptly, Beehive Homes is irrevocably appointed as the franchisee's attorney-in-fact to complete these steps on behalf of the franchisee.
These measures ensure a clean break between the franchisee and the Beehive Homes brand, protecting the brand's identity and preventing any potential confusion among customers. Franchisees should be aware of these obligations and prepared to fulfill them in the event of termination or expiration of the franchise agreement.