What are the Beehive Homes franchisee's obligations upon termination or non-renewal of the franchise agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
| d. Termination by YOU | Not Applicable | Not Applicable |
| e. Termination by US without | Not Applicable | Not Applicable |
| cause | ||
| f. Termination by US with cause | Section 14 | WE can terminate if YOU commit certain events of default or other breaches of the Franchise Agreement |
| g. "Cause" defined - curable defaults | Section 14.1 | YOU have 30 days to cure: nonpayment of fees, nonperformance of franchise agreement where performance can be completed |
| h. “Cause” defined - non- curable defaults | Section 14.1 | non-curable defaults: bankruptcy (may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, trademark misuse |
| i. YOUR obligations on termination/nonrenewal | Section 14.4; 14.5; 14.6 & 14.7 | pay amounts due; sell Home to Franchisor |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 25–27)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Item 17 summarizes franchisee obligations upon termination or non-renewal. Specifically, franchisees must pay all amounts due to Beehive Homes and sell the Home to the franchisor. The relevant sections outlining these obligations are Sections 14.4, 14.5, 14.6, and 14.7 of the franchise agreement.
This means that when the franchise agreement ends, either through termination or non-renewal, the franchisee is required to settle any outstanding financial debts with Beehive Homes. Additionally, the franchisee is obligated to sell the physical location of the Beehive Homes business back to the franchisor.
Prospective franchisees should carefully review Sections 14.4, 14.5, 14.6, and 14.7 of the franchise agreement to fully understand the specific procedures and conditions related to these obligations. Understanding these requirements is crucial for franchisees to plan for the end of their franchise term and to manage their financial and business transitions accordingly. It is also important to refer to the Specific State Disclosures attached to the Franchise Disclosure Document for important information concerning franchisee rights under certain laws of various states, including rights in connection with termination and renewal.