What is the Beehive Homes franchisee's obligation to not hold itself out as a franchisee after an Election Not to Renew?
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 Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee elects not to renew their franchise agreement, they have specific obligations to disassociate themselves from the Beehive Homes brand. The franchisee must not present themselves as a Beehive Homes franchisee and must stop using the brand's Names and Marks, Trade Secrets, and Copyrighted Materials.
Specifically, the franchisee is required to pay all outstanding fees, including a cancellation fee of $10,000. They must also discontinue using Beehive Homes' Names and Marks, Trade Secrets, and Copyrighted Materials. The franchisee must deliver to Beehive Homes all materials containing the Names and Marks or, if Beehive Homes prefers, destroy or obliterate these Names and Marks.
Furthermore, the franchisee must take steps to remove signs, destroy letterhead, and disconnect telephone numbers associated with the Beehive Homes brand, transferring these numbers to Beehive Homes if requested. They must also cancel any assumed business names that include Beehive Homes' Names or Marks. The franchisee must cease all operations at the location. Within 30 days of termination or expiration, the franchisee must provide evidence of compliance with these requirements to Beehive Homes. 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 obligations ensure a clean break between Beehive Homes and the departing franchisee, protecting the brand's reputation and preventing consumer confusion. Franchisees should be aware of these post-termination requirements and the associated costs, such as the $10,000 cancellation fee, when considering whether to renew their franchise agreement.