Is there a renewal fee for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2. Renewal Terms. Subject to the terms and conditions set forth in Section 5.3 below, Franchisee may renew its franchise upon the expiration of the initial Term or any renewal Term for additional consecutive ten (10) year Terms by giving Franchisor written notice of intent to renew at least six (6) months but not more than nine (9) months prior to the expiration date of the then current Term. Failure of the Franchisee to give such notice shall constitute an Election Not to Renew, unless the law of the state in which the Home is located provides otherwise. The Franchisee shall not be required to pay any renewal fee or additional franchise fee in connection with any renewal hereunder.
- 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.
- 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, franchisees are not required to pay a renewal fee to extend their franchise term. The initial term of the Franchise Agreement is ten years, starting from the month when franchise royalties first become due. Franchisees can renew for additional ten-year terms if they provide written notice to Beehive Homes at least six months, but no more than nine months, before the current term expires.
To qualify for renewal, franchisees must meet specific conditions. They must not be in default of any agreements with Beehive Homes or its affiliates. Additionally, the franchisee must own the Home directly or indirectly throughout the renewal term. Furthermore, franchisees must execute the then-current form of the Franchise Agreement, which may include terms that differ significantly from the original agreement, at least three months before the renewal term begins. Finally, the franchisee's Home, equipment, and procedures must meet the standards applicable to new franchisees at the time of renewal.
If a franchisee fails to provide the required renewal notice, it is considered an Election Not to Renew. In this case, the agreement does not expire but 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 arrangement provides some flexibility but ultimately allows Beehive Homes to decide on the long-term continuation of the franchise if the franchisee does not actively seek renewal.