If a Beehive Homes franchisee fails to complete disassociation steps, who is irrevocably appointed as their attorney-in-fact?

According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee fails to promptly complete the steps necessary to disassociate from the franchisor after termination or expiration of the franchise agreement, the franchisee irrevocably appoints Beehive Homes as their attorney-in-fact to complete those steps on their behalf. These 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 name registrations containing the Beehive Homes names or marks, and ceasing all operations at the location.

This provision ensures that Beehive Homes can protect its brand and trademarks even if a former franchisee is uncooperative. By granting Beehive Homes the power of attorney, the franchisor can take swift action to remove any lingering association with the brand, preventing potential damage to its reputation or confusion among customers.

For a prospective franchisee, this clause highlights the importance of fully complying with the disassociation requirements outlined in the franchise agreement. Failure to do so not only constitutes a breach of contract but also gives Beehive Homes the legal authority to act on the franchisee's behalf, potentially incurring costs that the franchisee may ultimately be responsible for. It is crucial to understand these obligations and the potential consequences of non-compliance before entering into a franchise agreement with Beehive Homes.