Can the terms of the renewed Beehive Homes franchise agreement be different?
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, the terms of the renewed franchise agreement can be materially different from the original agreement. Specifically, to renew the franchise, a franchisee must execute the then-current form of the Franchise Agreement, which Beehive Homes is using at least three months prior to the start of the renewal term.
This new agreement "may contain materially different terms" from the original agreement. This means that significant aspects of the franchise relationship, such as fees, operating procedures, or brand standards, could change upon renewal.
This condition is not uncommon in the franchise industry, as franchisors often update their agreements to reflect changes in the market, legal requirements, or the overall business model. However, it is important for a prospective Beehive Homes franchisee to understand that the terms of their franchise could change substantially when they renew, and they should carefully review the then-current form of the franchise agreement before committing to a renewal term. Franchisees should seek legal counsel to fully understand the implications of any changes.