What remedies, besides injunctive relief, does Beehive Homes have at law for franchisee non-compliance?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If Assignor, Assignee, or any [Shareholder/Partner/Member] breaches any of the conditions, representations, agreements, or warranties contained in this Assignment, Bee Hive Homes will be entitled to all relief and remedies available by law, and to all relief and remedies granted to Bee Hive Homes by the Franchise.
XIV. DEFAULT AND REMEDIES
14.1. Events of Default. The following, subject to the notice requirements of Section 14.2 below, shall constitute "Events of Default":
- (a) Any monies payable by Franchisee to Franchisor shall not be paid as and when due and payable;
- (b) There shall be any failure or omission in the full and faithful performance and observance of any of the terms, conditions and limitations of this Agreement on Franchisee's part to be performed or observed (other than the payment of monies);
- (c) The occupancy of Franchisee's Home shall be less than 50% for thirty (30) or more consecutive days after once having attained an occupancy of greater than 50%;
(e) Franchisee by its action or inaction, effects an incident which mayreasonably be expected to materially impair the goodwill associated with the Names and Marks;
(f) Franchisee commits any act which constitutes good cause for termination as determined under the law of the state in which the Home is located;
(g) Franchisee shall engage in any Unauthorized Transfer as provided in Section 13.5 of this Agreement; or
(h) The occurrence of an Event of Default under any other Franchise Agreement or other agreement between the Franchisee or any Affiliate of the Franchisee, on the one hand, and Franchisor or any of its Affiliates, on the other hand.
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- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes has several remedies at law for franchisee non-compliance. Specifically, if a franchisee fails to make payments when due or does not fully perform their obligations under the franchise agreement, it constitutes an event of default. Additional events of default include the occupancy of the franchisee's home falling below 50% for 30 or more consecutive days after previously exceeding that level, actions that may impair the goodwill associated with the Beehive Homes' names and marks, and engaging in any unauthorized transfer of the franchise. Furthermore, committing any act that constitutes good cause for termination under the laws of the state where the home is located also constitutes default.
Beehive Homes is entitled to all relief and remedies available by law if the franchisee breaches any conditions, representations, agreements, or warranties. This broad statement suggests that Beehive Homes can pursue various legal avenues to address non-compliance, including seeking monetary damages to cover losses resulting from the franchisee's breach. The remedies available to Beehive Homes are in addition to injunctive relief, which is a court order requiring the franchisee to stop a specific action that violates the franchise agreement, particularly regarding the use of Beehive Homes' names and marks.
It is important for prospective franchisees to understand these potential remedies, as they outline the legal consequences of failing to meet the obligations set forth in the franchise agreement. Franchisees should be aware that non-compliance can lead to significant legal and financial repercussions, including the possibility of Beehive Homes pursuing all available legal remedies to protect its interests. Additionally, Minnesota law has specific statutes to protect franchisees. For example, franchisees in Minnesota cannot consent to the franchisor obtaining injunctive relief, and a court will determine if a bond is required.