What specific actions are considered 'ceasing all use' of Copyrighted Materials by a Beehive Homes franchisee after termination?
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 beh
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, upon the termination or expiration of the franchise agreement, a franchisee must take several specific actions to cease all use of the franchisor's names, marks, trade secrets, and copyrighted materials. These actions are designed to fully disassociate the franchisee from the Beehive Homes brand and protect the franchisor's intellectual property. The franchisee must stop representing themselves as a Beehive Homes franchisee. They are also required to pay all outstanding fees and charges owed to Beehive Homes. Additionally, a cancellation fee of $10,000 is due to Beehive Homes.
Specifically, the franchisee must deliver and surrender all Names and Marks and any physical objects bearing or containing any of the Names and Marks, or, at Beehive Homes' election, to obliterate or destroy any Names and Marks in Franchisee's possession. The franchisee is also required to remove signs, destroy letterhead, and disconnect all telephone numbers listed under any of the Names or Marks or under any confusingly similar name. Upon Beehive Homes' request, the franchisee must transfer all such numbers and listings to Beehive Homes or its designee. Furthermore, the franchisee must take action to amend or cancel any assumed name, business name, or equivalent registration which contains any Names or Marks and cease all operations at the location.
To ensure compliance, the franchisee must furnish evidence satisfactory to Beehive Homes within 30 calendar days after termination or expiration of the agreement. If the franchisee fails to complete these steps promptly, Beehive Homes is irrevocably appointed as the franchisee's attorney-in-fact to complete these actions on behalf of the franchisee. This comprehensive list of actions ensures a clean break between the franchisee and the Beehive Homes brand, protecting the franchisor's intellectual property and goodwill. These obligations are typical in franchise agreements to maintain brand consistency and prevent misuse of intellectual property after a franchise relationship ends.