What are the obligations of a Beehive Homes franchisee upon the occurrence of an Event of Default?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nation or Expiration. Upon occurrence of an Event of Default, termination, Election Not to Renew or expiration of this Agreement for any reason, the Franchisee shall cease to be a licensed franchisee of Franchisor and Franchisee hereby covenants:
- (a) To pay to Franchisor all fees and other charges owed or accrued to Franchisor on or before the first day of the month following the date of termination or expiration;
- (b) To pay to Franchisor a cancellation fee in the amount of Ten Thousand Dollars ($10,000.00);
- (c) Not to hold itself out as a franchisee of Franchisor and to cease all use of the Names and Marks, Trade Secrets and Copyrighted Materials;
- (d) To deliver and surrender up to Franchisor each and all of the Names and Marks, and any physical objects bearing or containing any of the Names and Marks, or, at
Franchisor's election, to obliterate or destroy any Names and Marks in Franchisee's possession;
- (e) To take all necessary steps to disassociate itself from Franchisor, including, but not limited to, the removal of signs, destruction of letterhead, disconnecting of all telephone numbers listed under any of the Names or Marks or under any confusingly similar name and, upon Franchisor's request, transferringallsuch numbers and listings to Franchisor or its designee;
- (f) To take such action as shall be necessary to amend or cancel any assumed name, business name or equivalent registration which contains any Names or Marks;
- (g) To cease all operations at the Location;
- (h) To furnish evidence satisfactoryto Franchisor of compliancewith this Section within the thirty (30) calendar days after the termination or expiration under this Agreement; and
- (i) If Franchisee fails to promptly complete any of the foregoing steps, Franchisee hereby irrevocably appoints Franchisor as its attorney-in-fact to complete the foregoing steps for and on the behalf of the Franchisee.
- 14.5. Franchisor's Right to Purchase.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if an Event of Default occurs, a franchisee has several obligations. First, the franchisee must pay all outstanding fees and charges owed to Beehive Homes by the first day of the month following the termination or expiration of the franchise agreement. Additionally, the franchisee is obligated to pay a cancellation fee of $10,000.00 to Beehive Homes.
Furthermore, the franchisee must immediately cease representing themselves as a Beehive Homes franchisee. This includes stopping all use of Beehive Homes' names, marks, trade secrets, and copyrighted materials. The franchisee is also required to deliver and surrender all physical objects bearing Beehive Homes' names and marks to the franchisor. Alternatively, at Beehive Homes' discretion, the franchisee may be required to obliterate or destroy any of these names and marks in their possession.
In addition to the above, Beehive Homes may exercise an alternative right, upon the occurrence of an Event of Default, to charge an additional transfer fee. This fee is calculated as ten times [5% times [12 times [the greater of (i) the average published monthly rate per resident of the Home during the 12 months preceding the Event of Default, times the number of beds in the Home, or (ii) the average published monthly rate per resident of the home which has been in operation for the preceding 18 months and is in nearest geographic proximity to the Home, times the number of beds in the Home]]]. Finally, the franchisee is obligated to sell the Home and its contents within four months after receiving written notice from Beehive Homes to do so.