What specific actions must a Beehive Homes franchisee take to cease being a licensed 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 occurrence of an Event of Default, termination, Election Not to Renew, or expiration of the Franchise Agreement, a franchisee must take several actions to cease being a licensed franchisee. These include both financial and operational steps to disassociate from the Beehive Homes brand.
Specifically, the franchisee is obligated to pay all outstanding fees and charges owed to Beehive Homes up to the termination or expiration date. Additionally, the franchisee must pay a cancellation fee of $10,000. Operationally, the franchisee must cease holding themselves out as a Beehive Homes franchisee and discontinue all use of the Beehive Homes Names and Marks, Trade Secrets, and Copyrighted Materials. This includes surrendering all physical objects bearing the Names and Marks or, at Beehive Homes' election, obliterating or destroying any Names and Marks in the franchisee's possession.
Furthermore, the franchisee must take all necessary steps to disassociate from Beehive Homes. This includes removing signs, destroying letterhead, disconnecting telephone numbers listed under the Beehive Homes name (and transferring those numbers to Beehive Homes if requested), and taking action to amend or cancel any assumed name or business name registrations containing Beehive Homes' Names or Marks. The franchisee must also cease all operations at the location and furnish satisfactory evidence of compliance with these requirements within 30 calendar days after termination or expiration. If the franchisee fails to complete these steps, Beehive Homes is irrevocably appointed as the franchisee's attorney-in-fact to complete them on behalf of the franchisee.