What is the initial term length for a Beehive Homes franchise agreement?
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.
- 5.2. Renewal Terms. Subject to the terms and conditions set forth in Section 5.3 below, Franchisee may renew its franchise upon the expiration of the initial Term or any renewal Term for additional consecutive ten (10) year Terms by giving Franchisor written notice of intent to renew at least six (6) months but not more than nine (9) months prior to the expiration date of the then current Term. Failure of the Franchisee to give such notice shall constitute an Election Not to Renew, unless the law of the state in which the Home is located provides otherwise. The Franchisee shall not be required to pay any renewal fee or additional franchise fee in connection with any renewal hereunder.
- 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.
- 5.4. Non-Renewal. If Franchisee makes an Election Not to Renew as provided in 5.2 above, this Agreement shall not expire but shall continue in full force and effect on a month-tomonth basis until terminated by Franchisor by delivery to Franchisee of a written notice of termination at least thirty (30) days prior to the date of such termination.
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 commences on the effective date and extends until the last day of the calendar month that is ten years after the month in which franchise royalties first become due. This initial term can be terminated earlier under certain conditions specified in the agreement.
Following the initial term, a Beehive Homes franchisee has the option to renew the franchise for additional ten-year terms. To do so, the franchisee must provide written notice of their intent to renew to Beehive Homes at least six months, but no more than nine months, before the current term expires. Failure to provide this notice constitutes an election not to renew, unless state law dictates otherwise. Importantly, Beehive Homes does not require any renewal fee or additional franchise fee for any renewal term.
However, the ability to renew is contingent upon meeting specific conditions. The franchisee must not be in default of any agreement with Beehive Homes or its affiliates. They must also own the Beehive Homes location directly or indirectly throughout the renewal term. Furthermore, franchisees must execute the then-current form of the franchise agreement at least three months before the renewal term begins, which may contain significantly different terms than the original agreement. Finally, the Beehive Homes location, its equipment, and its operational procedures must meet the standards applicable to new franchisees at the time of renewal.
If a franchisee elects not to renew, the Beehive Homes franchise agreement does not immediately expire. Instead, it continues on a month-to-month basis. Beehive Homes retains the right to terminate the agreement by providing the franchisee with a written notice of termination at least thirty days before the termination date.