What triggers the franchisee's obligation to sell the Beehive Homes facility?

According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee is obligated to sell the Home and its contents within four months after receiving written notice from Beehive Homes under specific circumstances. These circumstances include the occurrence of an Event of Default as described in Section 14.1 of the agreement, subject to the notice requirements in Section 14.2. This also applies upon the occurrence of an Election Not to Renew as defined in Section 5.2 of the agreement, or upon the expiration of the agreement itself.

This obligation is in place regardless of any other provision within the franchise agreement. It ensures that Beehive Homes can maintain control over the facilities and brand integrity in cases of default, non-renewal, or expiration of the franchise term. The sale must adhere to the terms outlined in the agreement, providing a structured process for the transfer of ownership.

For a prospective Beehive Homes franchisee, this clause highlights the importance of understanding the conditions that constitute an Event of Default, the implications of choosing not to renew the franchise agreement, and the responsibilities at the end of the franchise term. It is crucial to be aware that under these specific conditions, the franchisee is required to sell the Home, potentially impacting their investment and business operations. Therefore, a clear understanding of these triggers and the terms of the sale is essential before entering into a franchise agreement with Beehive Homes.