When is the commission paid to Beehive Homes for finding the transferee due?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee or its Equity Owner(s) proposing the Transfer shall pay to Franchisor at the date of closing of the Transfer a commission equal to six percent (6%) of the gross transfer price if Franchisor or its Affiliate finds or introduces the proposed transferee to Franchisee or its Equity Owner(s);
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if Beehive Homes or its affiliate finds or introduces the proposed transferee to the franchisee, the franchisee must pay a commission. This commission is equal to six percent of the gross transfer price.
The FDD specifies that this commission is due on the date of closing of the transfer. This means that the franchisee needs to have the funds available and remit them to Beehive Homes at the time the transfer of the franchise is finalized.
It is important for prospective franchisees to understand this payment schedule, as it impacts the financial planning for the transfer. Franchisees should factor this commission into their calculations when determining the net proceeds from the sale of their franchise. Failing to pay this commission at closing would likely constitute a breach of the franchise agreement, with potential legal and financial consequences.