What standards must a Beehive Homes franchisee, its Home, equipment, and procedures 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's eligibility for renewal is contingent upon meeting specific conditions related to standards. To renew their franchise for an additional ten-year term, the franchisee, their Home, equipment, and procedures must meet the current standards applicable to new franchisees at the time of renewal. This implies that Beehive Homes can update its standards, and franchisees must adapt to these changes to remain compliant and secure their renewal.
In addition to meeting the updated standards, the franchisee must not be in default of any provision within the Franchise Agreement or any other agreement with Beehive Homes or its affiliates. They must also directly or indirectly own the Home throughout the renewal term. Furthermore, the franchisee is required to execute the then-current form of the Franchise Agreement at least three months before the renewal term begins. This new agreement may contain terms that are materially different from the original agreement, indicating that franchisees need to be prepared for potential changes in their obligations and the franchisor's expectations.
These conditions ensure that Beehive Homes maintains consistency and quality across all its franchised locations. By requiring franchisees to adhere to the latest standards and potentially accept new terms, Beehive Homes can evolve its business model and operational practices while ensuring all franchisees are aligned. For a prospective franchisee, this highlights the importance of continuous improvement and adaptability to changing standards and contractual terms. It also underscores the need to maintain a strong relationship with Beehive Homes and remain in good standing to secure future renewals.