Under what conditions does the Beehive Homes agreement continue on a month-to-month basis?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4. Non-Renewal. If Franchisee makes an Election Not to Renew as provided in 5.2 above, this Agreement shall not expire but shall continue in full force and effect on a month-tomonth basis until terminated by Franchisor by delivery to Franchisee of a written notice of termination at least thirty (30) days prior to the date of such termination.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise agreement does not automatically expire if a franchisee chooses not to renew it. Instead, as detailed in Section 5.4, the agreement continues on a month-to-month basis. This continuation is not indefinite, however.
The month-to-month arrangement remains in effect until Beehive Homes terminates the agreement. To do so, Beehive Homes must provide the franchisee with a written notice of termination at least thirty days before the termination date. This clause provides a safety net for both parties, allowing continued operation while preventing either party from being locked into an undesirable long-term commitment.
For a prospective Beehive Homes franchisee, this means that if they decide not to renew their franchise agreement after the initial or any subsequent renewal term, they can continue operating their Beehive Homes location under the same terms and conditions as before, but only for as long as Beehive Homes allows. This offers some flexibility but also introduces uncertainty, as the franchisee's continued operation depends on the franchisor's decision. It is important for franchisees to understand the conditions under which Beehive Homes might choose to terminate the agreement during this month-to-month period.