What is the length of the initial franchise term for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
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's 2025 Franchise Disclosure Document, the initial franchise term is ten years, as detailed in Section 5.1 of the franchise agreement. This means that a new franchisee will operate their Beehive Homes business under the franchise agreement for a decade before needing to consider renewal.
After the initial ten-year term, Section 5.2 states that franchisees in good standing have the option to renew for additional ten-year periods. To renew, Section 5 specifies that franchisees must provide three to nine months advance notice, secure approval from Beehive Homes, and sign the current form of the franchise agreement.
It is important to note that the renewal agreement may contain materially different terms and conditions from the initial franchise agreement. This is a common practice in franchising, allowing the franchisor to update the agreement to reflect changes in the market, legal requirements, or the Beehive Homes business model. Prospective franchisees should carefully review the renewal terms when the time comes to understand any changes and their implications.