What is the Beehive Homes franchisee's obligation to pay the cancellation fee after an Election Not to Renew?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nation to Franchisee.
- 14.4. Obligations of Franchisee Upon the Occurrence of an Event of Default, Termination 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 makes an Election Not to Renew, they are obligated to pay a cancellation fee. Specifically, upon an Election Not to Renew, the franchisee must pay Beehive Homes a cancellation fee of $10,000.00. This fee is in addition to any other fees or charges owed to Beehive Homes up to the date of termination or expiration of the franchise agreement.
In addition to the cancellation fee, the franchisee must cease operating as a Beehive Homes franchisee. This includes stopping all use of Beehive Homes' names, marks, trade secrets, and copyrighted materials. The franchisee must also take steps to disassociate themselves from Beehive Homes, such as removing signs, destroying letterhead, and disconnecting telephone numbers associated with the Beehive Homes brand. Furthermore, the franchisee is required to cease all operations at the location.
Beehive Homes also has the right to ensure the franchisee complies with these post-termination obligations. If the franchisee fails to take these steps, Beehive Homes is irrevocably appointed as the franchisee's attorney-in-fact to complete these actions on behalf of the franchisee. This ensures that Beehive Homes can protect its brand and proprietary information even if the franchisee does not cooperate after the franchise agreement ends.