What is an Affiliate Transfer in the context of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Permitted Transfers. Franchisee, and if Franchisee is a corporation or other legal entity, its Equity Owner(s) (or any transferee Equity Owner approved by Franchisor), may engage in Permitted Transfers, as defined in this Section 13.3, only if: (i) all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home; (ii) Franchisee or its Equity Owner(s) delivers to Franchisor, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request") which includes the identity and contact information for all proposed transferees and any other information Franchisor may require in order to review the proposed Permitted Transfer; (iii) Franchisee or its EquityOwner(s) pays to Franchisor a nonrefundable processing fee of Two Thousand Five Hundred Dollars ($2,500.00) with the Permitted Transfer Request; and (iv) Franchisee or its EquityOwner(s) complies with Franchisor's then current procedure for processing Permitted Transfers, including the execution of all documents required by Franchisor, including the then current form of Franchise Agreement in use by the Franchisor, for the assumption by proposed transferees of all duties and
obligations of the transferor relating to this Agreement, the Home and any other agreements between Franchisor and transferor. Permitted Transfer shall mean:
- (a) Affiliate Transfer. Franchisee or, if Franchisee is a corporation or other legal entity its Equity Owner(s), mayTransfer an Equity Interest to an Immediate Family Member of Franchisee, or to another Equity Owner or to an Immediate Family Member of another Equity Owner, provided that such transfer does not relieve the transferring Equity Owner of any obligations under this Agreement or Equity Owner's Guarantee and Assumption of Obligati
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, an Affiliate Transfer involves a franchisee or their Equity Owner transferring an Equity Interest to an Immediate Family Member of the franchisee, to another Equity Owner, or to an Immediate Family Member of another Equity Owner. This type of transfer is permitted under specific conditions, primarily that it does not relieve the transferring Equity Owner of their obligations under the Franchise Agreement or the Equity Owner's Guarantee and Assumption of Obligations.
To initiate an Affiliate Transfer, the franchisee must adhere to certain requirements. They must provide Beehive Homes with a written notice, called a "Permitted Transfer Request," at least thirty days before the proposed transfer. This notice should include the identities and contact information of all proposed transferees, along with any other information Beehive Homes requires to review the transfer. Additionally, the franchisee must pay a nonrefundable processing fee of $2,500 with the Permitted Transfer Request.
Furthermore, the franchisee must comply with Beehive Homes' current procedures for processing Permitted Transfers. This includes executing all necessary documents required by Beehive Homes, such as the current form of the Franchise Agreement, to ensure that the proposed transferees assume all duties and obligations of the transferor related to the agreement and the Beehive Homes location. Failing to meet these conditions could result in the transfer being classified as an Unauthorized Transfer, which carries significant financial penalties.