What is the Beehive Homes franchisee's obligation to cease being a licensed franchisee after an Event of Default?
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 Fr
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, upon the occurrence of an Event of Default, termination, an election not to renew, or the expiration of the Franchise Agreement, the franchisee must cease being a licensed franchisee of Beehive Homes.
Specifically, the franchisee must fulfill several obligations. First, they must pay all outstanding fees and charges owed to Beehive Homes up to the first day of the month following the termination or expiration date. Second, the franchisee is obligated to pay a cancellation fee of $10,000.
Additionally, the franchisee must immediately stop representing themselves as a Beehive Homes franchisee and discontinue all use of the Beehive Homes' names, marks, trade secrets, and copyrighted materials. Finally, the franchisee must return all physical items bearing Beehive Homes' names and marks to the franchisor or, at Beehive Homes' discretion, destroy or obliterate any such names and marks in their possession.