What is the latest a Beehive Homes franchisee can provide written notice of intent to renew?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, a franchisee who wishes to renew their franchise agreement must provide written notice of their intent to renew to Beehive Homes at least six months prior to the expiration date of the current term. However, this notice cannot be provided more than nine months before the current term's expiration. Failing to provide this notice within the specified timeframe constitutes an election not to renew, unless the laws of the state where the Beehive Homes location is situated dictate otherwise.
This requirement ensures that Beehive Homes has adequate time to plan for the future of the franchise location, whether it involves renewal with the current franchisee or transitioning to a new franchisee. It also allows the franchisee sufficient time to prepare for either continuing their business under the Beehive Homes brand or making alternative arrangements if they choose not to renew.
It is important to note that the option to renew is contingent upon the franchisee meeting certain conditions at the time of the renewal notice and at the start of the renewal term. These conditions include not being in default of any agreements with Beehive Homes, owning the Home directly or indirectly, executing the then-current form of the Franchise Agreement, and ensuring that the Home, equipment, and procedures meet the current standards applicable to new franchisees. The new Franchise Agreement may contain terms that are materially different from the original agreement.
If a franchisee elects not to renew, the Franchise Agreement does not immediately expire. Instead, it continues on a month-to-month basis until Beehive Homes terminates the agreement by providing at least thirty days' written notice to the franchisee. This provides a transition period, but the franchisee operates under the uncertainty of a potentially short termination window.