How can Beehive Homes terminate the agreement if the franchisee elects not to renew?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4. Non-Renewal. If Franchisee makes an Election Not to Renew as provided in 5.2 above, this Agreement shall not expire but shall continue in full force and effect on a month-tomonth basis until terminated by Franchisor by delivery to Franchisee of a written notice of termination at least thirty (30) days prior to the date of such termination.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee elects not to renew their franchise agreement, the agreement does not immediately expire. Instead, it continues on a month-to-month basis. Beehive Homes can then terminate the agreement by providing the franchisee with a written notice of termination at least thirty days before the termination date.
This means that even after a franchisee decides not to renew, the franchise agreement remains in effect for at least another 30 days, allowing Beehive Homes to ensure a smooth transition or make alternative arrangements for the location. This provision protects Beehive Homes' interests by preventing an abrupt cessation of operations and potential disruption to the brand.
It is important for prospective franchisees to understand that electing not to renew does not automatically end their obligations under the franchise agreement. They must continue to operate under the terms of the agreement until Beehive Homes formally terminates it with a 30-day written notice. This also gives the franchisee a 30 day notice to prepare for the termination.