What do the Assignor, Assignee, and Shareholders/Partners/Members acknowledge regarding Beehive Homes' consent in Recital C?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Assignment and Consent to Assignment of Franchise to a | ||
|---|---|---|
| [Corporation/Partnership/Limited Liability Company], dated, 2025 | ||
| ("Assignment"), is by and among | "Assignor"); [Corporation/Partnership/LLC Name], a [corporation/partnership/limited liability company] ("Assignee"); and those | BEE HIVE HOMES, INC., a Utah corporation ("Bee Hive Homes"); and (collectively, the |
| [shareholders/partners/members] | of Assignee (individually ["Shareholder"/"Partner"/"Member"] and collectively ["Shareholders"/"Partners"/"Members"]) listed on Exhibit A attached hereto and | |
| incorporated herein by reference. | Recitals | |
| (the "Franchise"). | A. Bee Hive Homes or its predecessor in interest issued to Assignor or its predecessor(s) in interest a Franchise Agreement dated (the "Franchise Agreement"), for the Bee Hive Homes Franchise located at | |
| Assignee. | B. Assignor requests Bee Hive Homes' consent to transfer the rights in the Franchise to | |
| Homes' consent to this Assignment is required under the terms of the Franchise Agreement. Agreement | C. Assignor, Assignee, and [Shareholders/Partners/Members] acknowledge that Bee Hive |
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes FDD, Recital C of the Assignment and Consent to Assignment of Franchise agreement states that the Assignor, Assignee, and any associated Shareholders/Partners/Members acknowledge that Beehive Homes' consent is required for the assignment under the terms of the Franchise Agreement. This acknowledgment is a prerequisite for Beehive Homes to proceed with the assignment.
This requirement ensures that Beehive Homes maintains control over who operates a franchise under its brand. By requiring consent, Beehive Homes can vet potential new franchisees (the Assignee) and ensure they meet the company's standards and qualifications. This protects the brand's reputation and the interests of other franchisees within the Beehive Homes system.
For a prospective Beehive Homes franchisee, this means that if they ever wish to sell or transfer their franchise, they cannot do so without Beehive Homes' explicit approval. This approval will likely involve a review of the proposed new owner's financial stability, operational experience, and commitment to upholding Beehive Homes' standards. The shareholders, partners, or members of the assignee are also subject to this requirement.