When does the initial term for a Beehive Homes franchise agreement commence?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.1. Initial Term. This Agreement shall have an initial Term commencing on the Effective Date hereof and ending on the last day of the calendar month which is ten (10) years after the calendar month in which Franchise Royalties are first due under this Agreement, unless terminated at an earlier date as provided herein.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the initial term of the franchise agreement begins on the "Effective Date" and concludes on the last day of the calendar month that is ten years after the month in which franchise royalties first become due. This means the start date is explicitly tied to the agreement's effective date, while the end date is determined by when royalty payments begin, plus a decade.
For a prospective Beehive Homes franchisee, this means the actual length of the initial term can vary slightly depending on when royalties start. If royalties begin immediately, the term will be very close to ten years. However, if there's a delay before royalties are due, the initial term could extend a bit longer.
It's also important to note that the franchise agreement can be terminated earlier under certain conditions outlined elsewhere in the agreement. Understanding the "Effective Date" and the start of royalty payments is crucial for franchisees to accurately calculate the duration of their initial franchise term and plan accordingly.