What happens if a Beehive Homes franchisee is in default at the time of renewal?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.3. Conditions to Renewal. Franchisee's renewal under Section 5.2 is subject to Franchisee's compliance with the following on the date of the notice of intent to renew and on the first day of the renewal Term: (i) Franchisee is not in default of any provision of this Agreement or any other Franchise Agreement or any other agreement with Franchisor or its Affiliates to which the Franchisee is a party; (ii) Franchisee is directly or indirectly the owner of the Home and will be for the renewal Term; (iii) Franchisee executes at least three (3) months prior to the first day of the renewal Term the then current form of Franchise Agreement being used by Franchisor, which Franchise Agreement may contain materially different terms from those contained in this Agreement; and (iv) Franchisee, its Home, equipment and procedures meet the current Standards applicable to new franchisees.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee's ability to renew their franchise is contingent upon several factors, including not being in default of any agreement with Beehive Homes or its affiliates at the time of renewal. Specifically, the franchisee must not be in default on the date of the notice of intent to renew and on the first day of the renewal term.
If a Beehive Homes franchisee is in default, they will not be able to renew their franchise agreement. To be eligible for renewal, the franchisee must be in full compliance with all agreements. This includes the franchise agreement itself, any other franchise agreements, and any other agreements with Beehive Homes or its affiliates.
In addition to not being in default, the franchisee must also directly or indirectly own the Home for the renewal term, execute the then-current form of the Franchise Agreement at least three months before the renewal term begins (which may contain materially different terms), and ensure that the Home, equipment, and procedures meet the current standards applicable to new franchisees. Meeting all of these conditions is essential for a Beehive Homes franchisee to successfully renew their franchise for an additional term.