Under what condition can Beehive Homes provide written notice of default to a franchisee's lender?

According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes can provide written notice of default to a franchisee's lender if an Event of Default occurs under Section 14.1(a) of the franchise agreement. Section 14.1(a) refers to the instance when any monies payable by the franchisee to Beehive Homes are not paid when due.

This means that if a franchisee fails to make required payments to Beehive Homes, the franchisor has the right to inform the franchisee's lender of this default. This notification serves as a warning to the lender that the franchisee's business may be in financial distress, potentially affecting their ability to repay the loan.

For a prospective Beehive Homes franchisee, this clause highlights the importance of maintaining timely payments to the franchisor. Failure to do so not only triggers default notices to the franchisee but also puts their lender on alert, which could have further implications for their financing and business operations. Franchisees should ensure they have sufficient financial planning and management in place to meet their payment obligations to Beehive Homes and avoid triggering this default scenario.