Under what conditions can Beehive Homes terminate the franchise agreement with cause?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
| d. Termination by YOU | Not Applicable | Not Applicable |
| e. Termination by US without | Not Applicable | Not Applicable |
| cause | ||
| 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 |
| i. YOUR obligations on termination/nonrenewal | Section 14.4; 14.5; 14.6 & 14.7 | pay amounts due; sell Home to Franchisor |
| j. Assignment of contract by | Section 13.1 | Assignee reasonably willing and able to |
| US | perform | |
| k. "Transfer" by YOU - | Section 2.20; | includes transfer of contract or assets and |
| defined | 13.2 | change in ownership |
| l. |
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, Beehive Homes can terminate the franchise agreement with cause if the franchisee commits certain events of default or other breaches of the Franchise Agreement, as detailed in Section 14 of the agreement. These defaults are categorized as either curable or non-curable.
Curable defaults, as outlined in Section 14.1, include nonpayment of fees and nonperformance of the franchise agreement where performance can be completed. In these instances, the franchisee has 30 days to rectify the situation. Non-curable defaults, also defined in Section 14.1, include events such as bankruptcy (though this may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment of the franchise, and trademark misuse.
Upon termination, Section 14.4, 14.5, 14.6 & 14.7 specify the franchisee's obligations, which include paying all amounts due and selling the Home to Beehive Homes. Additionally, Beehive Homes has the option to purchase the franchisee's business for the initial cost of the real property and the book value of the personal property upon an Event of Default, as stated in Section 14.5.