Under what circumstances does the Beehive Homes franchisor have the right to purchase the franchisee's property?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5. Franchisor's Right to Purchase. As additional consideration for this Agreement, Franchisee hereby gives and grants to Franchisor and its designees, the unrestricted right and option, exercisable upon the occurrence of an Event of Default described in Section 14.1 above, and subject to the notice requirements of Section 14.2 above, or upon the occurrence of an Election Not to Renew as defined in Section 5.2 of this Agreement, or termination or expiration of this Agreement, to purchase (i) all or any portion of the Personal Property (consisting of all furniture, equipment, supplies, other chattels, intangibles and other property) in use at the Home, and/or (ii) all right, title and interest of Franchisee or its Equity Owner(s) in and to the Real Property (Home). Franchisor or its designee may exercise this right and option by delivering to Franchisee a written Notice of Exercise on or before the date which is ninety (90) days after the later of (x) the occurrence of an Event of Default; or (y) the expiration of this Agreement after Franchisee's Election Not to Renew. This right and option is in addition to any other remedies available to Franchisor at law or pursuant to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisor has the right to purchase the franchisee's property under specific circumstances. Beehive Homes, as additional consideration for the franchise agreement, retains the right and option to purchase the franchisee's personal property and/or real property (the Home).
This right is exercisable upon 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. It can also be exercised if the franchisee elects not to renew the agreement, as defined in Section 5.2, or upon the termination or expiration of the agreement.
Beehive Homes, or its designee, can exercise this option by delivering a written Notice of Exercise to the franchisee within ninety (90) days after the later of (x) the occurrence of an Event of Default; or (y) the expiration of the Franchise Agreement after the Franchisee's Election Not to Renew. This purchase option is in addition to any other legal remedies available to Beehive Homes under the agreement or at law.