What does the Assignor transfer to the Assignee on the Effective Date of a Beehive Homes franchise assignment?
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 | |
| as follows: | The parties, intending to be legally bound and for good and valuable consideration, agree 1. The effective date of this Assignment is ("Effective Date"). | |
| Agreement and this Assignment. | 2. Bee Hive Homes consents to this Assignment subject to the provisions of the Franchise | |
| Assignor in the Franchise to Assignee, subject to the provisions of the Franchise Agreement. | 3. On the Effective Date, Assignor assigns and transfers all the right, title, and interest of |
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, on the Effective Date of an assignment, the Assignor transfers all right, title, and interest in the franchise to the Assignee, subject to the provisions outlined in the Franchise Agreement. This transfer is contingent upon Beehive Homes' consent and adherence to the terms specified within both the Franchise Agreement and the Assignment agreement.
This means that the Assignee essentially steps into the shoes of the Assignor, assuming the rights to operate the Beehive Homes franchise. However, this transfer is not absolute. Beehive Homes retains certain controls and the Assignor may remain liable for certain obligations even after the assignment.
Specifically, the consent of Beehive Homes is required for the assignment to be valid, ensuring that the new franchisee meets their standards. The agreement also stipulates that all terms and conditions of the original Franchise Agreement remain in full effect, except as explicitly modified by the Assignment. This protects Beehive Homes' interests and ensures consistency across its franchise network.