What are the obligations of a Beehive Homes franchisee upon termination or nonrenewal of the franchise agreement?
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 |
| d. Termination by YOU | Not Applicable | Not Applicable |
| e. Termination by US without | Not Applicable | Not Applicable |
| cause | ||
| f. Termination by US with cause | Section 14 | WE can terminate if YOU commit certain events of default or other breaches of the Franchise Agreement |
| g. "Cause" defined - curable defaults | Section 14.1 | YOU have 30 days to cure: nonpayment of fees, nonperformance of franchise agreement where performance can be completed |
| h. “Cause” defined - non- curable defaults | Section 14.1 | non-curable defaults: bankruptcy (may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, trademark misuse |
| i. YOUR obligations on termination/nonrenewal | Section 14.4; 14.5; 14.6 & 14.7 | pay amounts due; sell Home to Franchisor |
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, Item 17 outlines the franchisee's obligations upon termination or nonrenewal. Specifically, the franchisee is required to pay all outstanding amounts due to Beehive Homes. Additionally, the franchisee must sell the Home (presumably the franchise location) to Beehive Homes. These obligations are detailed in Sections 14.4, 14.5, 14.6, and 14.7 of the Franchise Agreement.
This means that upon termination or nonrenewal, a Beehive Homes franchisee must settle all financial obligations with the franchisor. Furthermore, they are obligated to sell the physical location of the Beehive Homes business back to the franchisor. This could involve negotiations regarding the sale price and terms, which would be governed by the specifics outlined in the referenced sections of the Franchise Agreement.
It is important for prospective franchisees to carefully review Sections 14.4, 14.5, 14.6, and 14.7 of the Franchise Agreement to fully understand the conditions and procedures related to the sale of the Home back to Beehive Homes. This includes understanding how the sale price will be determined, what costs the franchisee will be responsible for, and what recourse they have if they disagree with the franchisor's valuation or terms. Additionally, prospective franchisees should consult the Specific State Disclosures attached to the Franchise Disclosure Document for any state-specific regulations concerning termination and renewal rights.