Under what circumstances is non-payment of monies considered an Event of Default for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.1. Events of Default. The following, subject to the notice requirements of Section 14.2 below, shall constitute "Events of Default":
- (a) Any monies payable by Franchisee to Franchisor shall not be paid as and when due and payable;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the failure to pay monies owed to the franchisor constitutes an Event of Default. Specifically, if any monies payable by the franchisee to Beehive Homes are not paid when due, it triggers this default.
This is a standard clause in most franchise agreements. It means that a franchisee's failure to make timely payments of royalties, fees, or any other financial obligations to Beehive Homes can lead to serious consequences, including potential termination of the franchise agreement. Franchisees must maintain diligent financial management to ensure all payments are made on time to avoid triggering this event of default.
Beehive Homes may provide a written Notice of Default, which the franchisee must cure either immediately if the default is capable of immediate cure, or within thirty days of the notice, unless a longer period is required by state law. Failure to cure the default can then lead to termination of the franchise agreement by Beehive Homes.