What ownership requirements must a Beehive Homes franchisee meet to be eligible for renewal?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must meet specific ownership requirements. To be eligible for renewal, the franchisee must directly or indirectly own the Beehive Homes location, and must continue to own it throughout the renewal term. This condition must be met both at the time the franchisee submits their notice of intent to renew and on the first day of the renewal term.
This requirement ensures that the franchisee has a vested interest in the ongoing operation and success of the Beehive Homes business. It prevents situations where a franchisee might seek to renew the agreement without maintaining a controlling stake in the physical location, which could potentially lead to mismanagement or neglect of the property.
It is important for prospective Beehive Homes franchisees to understand that maintaining ownership is not the only condition for renewal. The franchisee must also be in compliance with all agreements with Beehive Homes and adhere to the brand's standards for new franchisees. Additionally, they must execute the then-current form of the Franchise Agreement, which may contain materially different terms. Therefore, franchisees should carefully review all renewal conditions to ensure they can meet all requirements.