What happens if a Beehive Homes franchisee fails to promptly complete the disassociation steps?

According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee does not promptly complete the steps to disassociate from the Beehive Homes brand after termination or expiration of the franchise agreement, the franchisee irrevocably appoints Beehive Homes as their attorney-in-fact. This appointment grants Beehive Homes the authority to complete the disassociation steps on behalf of the franchisee.

The required disassociation steps include removing signs, destroying letterhead, disconnecting telephone numbers listed under the Beehive Homes name, transferring those numbers to Beehive Homes, amending or canceling any assumed business names containing Beehive Homes' names or marks, and ceasing all operations at the location. The franchisee has 30 calendar days after termination or expiration of the agreement to furnish evidence of compliance with these disassociation steps.

This provision protects Beehive Homes' brand and ensures a consistent brand image, even after a franchise relationship ends. By retaining the power of attorney, Beehive Homes can swiftly and effectively remove any lingering association with a former franchisee, preventing potential confusion or damage to the brand's reputation. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand and trademarks.

For a prospective franchisee, this means understanding the importance of diligently following the required disassociation steps upon the end of the franchise agreement. Failure to do so not only constitutes a breach of contract but also relinquishes control to Beehive Homes to take those actions on their behalf. Franchisees should be aware of the specific requirements and deadlines to avoid this situation.