Can Beehive Homes charge a fee for reviewing a proposed mortgage or pledge?
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 under specific circumstances. This fee is associated with the franchisor's review of financing arrangements that require their approval.
Specifically, if a franchisee seeks to create a lien or encumbrance on the Home or an Equity Interest beyond what is initially permitted for financing the acquisition or construction, they must obtain prior written approval from Beehive Homes. This approval process involves Beehive Homes evaluating the financing structure to determine if any special agreements or assurances are needed for the lender, franchisee, or equity owners. These assurances may include a "lender comfort letter" or a loan-related guaranty.
Beehive Homes reserves the right to charge a fee for the review of the proposed mortgage or pledge and for processing a lender comfort letter. This implies that franchisees should factor in potential costs associated with these reviews when planning their financing. It is important for prospective franchisees to discuss these potential fees with Beehive Homes to understand the specific amounts and circumstances under which they may be charged.