What is the length of each renewal term for a Beehive Homes franchise?
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 can renew their franchise for additional terms of ten years each. To renew, the franchisee must provide Beehive Homes with written notice of their intent to renew. This notice must be given at least six months, but no more than nine months, before the current term expires.
The option to renew is contingent upon the franchisee meeting certain conditions. Specifically, the franchisee must not be in default of any agreements with Beehive Homes or its affiliates at the time of renewal. The franchisee must also own the physical location of the Beehive Homes facility throughout the renewal term.
Furthermore, franchisees must execute the then-current form of the Franchise Agreement, which may contain significantly different terms than the original agreement. The franchisee's home, equipment, and procedures must also meet the standards applicable to new franchisees at the time of renewal. Failing to meet these conditions or provide timely notice will result in the agreement continuing on a month-to-month basis until Beehive Homes terminates it with a 30-day written notice.