What is the Beehive Homes franchisee's obligation regarding the use of Names and Marks after an Election Not to Renew?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
- 14.5. Franchisor's Right to Purchase. As additional consideration for this Agreement, Franchisee hereby gives and grants to Franchisor and its designees, the unrestricted right and option, exercisable upon the occurrence of an Event of Default described in Section 14.1 above, and subject to the notice requirements of Section 14.2 above, or upon the occurrence of an Election Not to Renew as defined in Section 5.2 of this Agreement, or termination or expiration of this Agreement, to purchase (i) all or any portion of the Personal Property (consisting of all furniture, equipment, supplies, other chattels, intangibles and other property) in use at the Home, and/or (ii) all right, title and interest of Franchisee or its Equity Owner(s) in and to the Real Property (Home). Franchisor or its designee may exercise this right and option by delivering to Franchisee a written Notice of Exercise on or before the date which is ninety (90) days after the later of (x) the occurrence of an Event of Default; or (y) the expiration of this Agreement after Franchisee's Election Not to Renew.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, if a franchisee elects not to renew their franchise agreement, they have specific obligations regarding the use of Beehive Homes' Names and Marks. The franchisee must take all necessary steps to disassociate themselves from Beehive Homes. This includes removing signs, destroying letterhead, and disconnecting all telephone numbers listed under any of the Names or Marks or any confusingly similar name. Upon Beehive Homes' request, the franchisee must transfer all such numbers and listings to Beehive Homes or its designee.
Furthermore, the franchisee is required to take action to amend or cancel any assumed name, business name, or equivalent registration that contains any of Beehive Homes' Names or Marks. They must also cease all operations at the location. The franchisee must furnish 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 promptly complete these steps, they irrevocably appoint Beehive Homes as their attorney-in-fact to complete these actions on their behalf. This provision ensures that Beehive Homes can protect its brand and trademarks even if a franchisee is uncooperative after the franchise agreement ends. This is a fairly standard practice in franchising, as franchisors need to maintain control over their brand identity and prevent former franchisees from trading on their goodwill.
In addition to the obligations regarding the Names and Marks, upon the occurrence of an Election Not to Renew, Beehive Homes retains the right to purchase all or any portion of the Personal Property (consisting of all furniture, equipment, supplies, other chattels, intangibles and other property) in use at the Home, and/or all right, title and interest of Franchisee or its Equity Owner(s) in and to the Real Property (Home). Beehive Homes may exercise this right and option by delivering to Franchisee a written Notice of Exercise on or before the date which is ninety (90) days after the later of the expiration of this Agreement after Franchisee's Election Not to Renew.