Under what circumstances can Beehive Homes terminate a franchise agreement with cause?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| f. Termination by US with cause | Section 14 | WE can terminate if YOU commit certain events of default or other breaches of the Franchise Agreement |
| g. "Cause" defined - curable defaults | Section 14.1 | YOU have 30 days to cure: nonpayment of fees, nonperformance of franchise agreement where performance can be completed |
| h. “Cause” defined - non- curable defaults | Section 14.1 | non-curable defaults: bankruptcy (may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, trademark misuse |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 25–27)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the franchise agreement can be terminated with cause if a franchisee commits certain events of default or other breaches of the Franchise Agreement, as detailed in Section 14. The FDD outlines both curable and non-curable defaults that could lead to termination.
Curable defaults, as specified in Section 14.1, include nonpayment of fees and nonperformance of the franchise agreement where performance can be completed. In these instances, a franchisee has 30 days to rectify the situation. Non-curable defaults, also found in Section 14.1, include situations such as bankruptcy (though this may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, and trademark misuse.
It is important for a prospective Beehive Homes franchisee to understand these conditions, as they define the circumstances under which their franchise agreement could be terminated. Understanding the difference between curable and non-curable defaults is crucial, as it dictates the franchisee's ability to remedy the situation and maintain their franchise. Additionally, the FDD notes that specific state disclosures may contain important information concerning franchisee rights under certain state laws, including those related to termination.