Is the Beehive Homes franchisor's right to purchase the franchisee's property in addition to other remedies?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. This right and option is in addition to any other remedies available to Franchisor at law or pursuant to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes FDD, Beehive Homes retains the right to purchase the franchisee's personal and real property under certain conditions, and this right is explicitly stated as being in addition to any other remedies available to them. Specifically, Beehive Homes can exercise this option upon the occurrence of an Event of Default, an Election Not to Renew, or the termination or expiration of the Franchise Agreement.
Beehive Homes or its designee has the option to purchase all or any portion of the personal property in use at the Home, which includes furniture, equipment, supplies, and other chattels and intangibles. They can also purchase all right, title, and interest of the franchisee or its equity owners in the real property (the Home). To exercise this right, Beehive Homes must deliver a written Notice of Exercise to the franchisee within ninety days after the later of the occurrence of an Event of Default or the expiration of the Franchise Agreement after the franchisee's Election Not to Renew.
This provision in the franchise agreement gives Beehive Homes significant leverage in the event of a default or non-renewal. It allows them to potentially take over the physical assets and real estate associated with the franchise, in addition to pursuing other legal or contractual remedies. For a prospective franchisee, this means that losing the franchise could also mean losing control of the physical location and assets of the business, depending on whether Beehive Homes chooses to exercise its purchase option. This should be carefully considered when evaluating the risks and potential outcomes of investing in a Beehive Homes franchise.