Can Beehive Homes charge a fee for processing a lender comfort letter?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Franchisee and/or its Equity Owner(s) must notify Franchisor, in writing, before creating any additional lien or encumbrance, beyond that permitted under Section 13.7(a), on the Home or an Equity Interest therein, or making a collateral assignment of this Agreement and shall not create such lien or encumbrance without the prior written approval of Franchisor. Such approval may be based upon, among other factors, Franchisor's evaluation of the structure of the financing to determine which, if any, special agreements and/or assurances for the lender, the Franchisee and/or its Equity Owner(s) will be required of Franchisor, including a "lender comfort letter" or a loan related guaranty, in a form satisfactory to Franchisor. Franchisor may charge a fee for its review of a proposed mortgage or pledge and for the processing of a lender comfort letter.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes may charge a fee for reviewing a proposed mortgage or pledge and for processing a lender comfort letter. This is relevant when a franchisee seeks financing for the acquisition or construction of a Beehive Homes location.
Specifically, if a franchisee needs to create a lien or encumbrance beyond what is initially permitted for financing the acquisition or construction, they must notify Beehive Homes in writing and obtain prior written approval. This approval process allows Beehive Homes to evaluate the financing structure and determine if any special agreements or assurances are needed for the lender, franchisee, or equity owners. These assurances may include a lender comfort letter.
The FDD indicates that Beehive Homes' approval for additional liens or encumbrances may depend on their evaluation of the financing structure. This evaluation determines what special agreements or assurances might be required, including a lender comfort letter. The ability to charge a fee for this service allows Beehive Homes to offset the costs associated with reviewing the proposed financing and providing the lender comfort letter, which protects their brand and standards.