Is the assignment of the Beehive Homes franchise unconditional?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Assignee must pay all fees and perform all obligations under the Franchise Agreement.
Assignor agrees to remain personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, and is not released from any obligations to Bee Hive Homes by this Assignment. After the date of this Assignment, all references to Franchisee in the Franchise Agreement shall refer to both Assignor and Assignee both jointly and severally.
[Alternate paragraph to be used for Assignment to Corporation.]
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- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Shareholders may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Shareholder;
- d) the creation of new or additional equity interests in Assignee; or
- e) any amendment of the terms of any organizational documents relating to Assignee.
Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Franchise including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.
[Alternate paragraph to be used for Assignment to Partnership.]
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the assignment of a franchise is not unconditional. Several conditions and limitations apply to the assignment of a Beehive Homes franchise, as detailed in Item 23 concerning receipts.
Specifically, if the assignment is to a corporation, partnership, or limited liability company, the assignor, assignee, and related parties such as shareholders, partners, or members, cannot make further transfers or encumbrances without prior written consent from Beehive Homes. This includes any transfer or pledge of the franchise, equity interests, or amendments to organizational documents. These restrictions ensure that Beehive Homes maintains control over who operates its franchises and can prevent unwanted changes in ownership or management.
Furthermore, even after an assignment, the original assignor remains personally bound by the Franchise Agreement. This means the assignor is still liable for any breaches of the agreement, reinforcing the franchisor's security. Additionally, Beehive Homes retains the right to examine the records of the assignor, assignee, and related parties to ensure compliance with the Franchise Agreement and the assignment terms. These stipulations highlight that Beehive Homes retains significant oversight and approval rights over franchise assignments to protect its brand and system standards.