Is the commission paid to Beehive Homes for arranging a transferee refundable?

According to Beehive Homes' 2025 Franchise Disclosure Document, the commission paid to Beehive Homes for arranging a transfer of a franchise is nonrefundable. Specifically, if Beehive Homes arranges the transferee, the franchisee must pay Beehive Homes a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to a transfer fee.

This means that if a franchisee decides to sell their Beehive Homes franchise and Beehive Homes helps find a buyer, the franchisee will be required to pay a commission of 6% of the total selling price. This commission is in addition to the standard transfer fee, which can be either $2,500 or $15,000 depending on the type of transfer. The 6% commission is nonrefundable, regardless of the circumstances of the transfer.

Franchisees should be aware of this nonrefundable commission, as it represents a significant cost associated with selling their franchise. It is important to factor this expense into any financial planning related to the potential sale of the Beehive Homes franchise. This is a fairly standard practice in franchising, as the franchisor is providing a service by finding a suitable transferee.