Who is bound by the Beehive Homes assignment agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The parties' respective successors, assigns, heirs, and personal representatives are bound by this Assignment. All obligations, agreements, representations, and warranties made by more than one party will be joint and several even if it is not so stated in the relevant paragraph.
- 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.
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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.
- d) Bee Hive Homes has not reviewed any trust documents of any [Shareholder's/Partner's/Member's] trust; therefore, this Assignment does not constitute an approval by Bee Hive Homes of any documents relating to any [Shareholder's/Partner's/Member's] trust. If any of those documents conflict with or contradict the provisions of this Assignment or Bee Hive Homes ownership policies, Bee Hive Homes will not be bound by those documents and the provisions of this Assignment will control.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the parties' respective successors, assigns, heirs, and personal representatives are bound by the assignment agreement. This means that if the original assignor or assignee dies or transfers their interest, the agreement remains in effect for their successors.
Additionally, the assignor agrees to remain personally bound by and liable for any breaches of the Franchise Agreement, including monetary obligations and specific actions or activities. After the assignment date, any reference to the franchisee in the Franchise Agreement refers to both the assignor and assignee, jointly and severally. This indicates that the original franchisee (assignor) is not fully released from their obligations even after assigning the franchise to someone else (assignee).
Furthermore, without prior written consent from Beehive Homes, the assignor, assignee, and any shareholders, partners, or members may not make or permit any further transfer or assignment of the franchise, pledge or encumber the franchise, or transfer any equity interest in the assignee. This restriction ensures that Beehive Homes maintains control over who operates its franchises and that any changes in ownership or equity are subject to their approval. Beehive Homes also states that they have not reviewed any trust documents of any Shareholder's/Partner's/Member's trust; therefore, the assignment does not constitute an approval by Beehive Homes of any documents relating to any Shareholder's/Partner's/Member's trust. If any of those documents conflict with or contradict the provisions of this Assignment or Bee Hive Homes ownership policies, Bee Hive Homes will not be bound by those documents and the provisions of this Assignment will control.
These provisions are typical in franchise agreements to protect the franchisor's interests and ensure the consistent operation of the franchise system. A prospective Beehive Homes franchisee should carefully review these terms to understand their ongoing obligations and the restrictions on transferring or assigning their franchise.