If a Beehive Homes franchisee commits a curable default, how many days do they have to cure it?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| 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 |
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, a franchisee has 30 days to cure certain defaults. Specifically, this 30-day cure period applies to nonpayment of fees and nonperformance of the franchise agreement where the performance can be completed.
It is important for prospective Beehive Homes franchisees to understand the distinction between curable and non-curable defaults. Non-curable defaults, such as bankruptcy, unauthorized transfers, abandonment, and trademark misuse, can lead to immediate termination of the franchise agreement without an opportunity to correct the issue. This highlights the importance of adhering to the terms of the franchise agreement and maintaining sound business practices.
The FDD also advises franchisees to refer to the Specific State Disclosures attached to the document for important information concerning their rights under certain state laws, including rights related to termination. This suggests that cure periods and termination rights may vary depending on the franchisee's location, making it essential to review these disclosures carefully. Franchise agreements often include cure periods for defaults, but the length and terms can vary significantly between franchise systems.