What commission is paid to the Franchisor if they find the transferee for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the foregoing, Franchisee or its Equity Owner(s) proposing the Unauthorized 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 a franchisee or their equity owner proposes a transfer and Beehive Homes or its affiliate finds or introduces the proposed transferee, the franchisee will pay Beehive Homes a commission. This commission is equal to six percent (6%) of the gross transfer price. This payment is due on the date the transfer closes.
This means that if a Beehive Homes franchisee decides to sell their franchise and Beehive Homes assists in finding a buyer, Beehive Homes will receive 6% of the total sale price. For example, if a franchise is sold for $500,000 and Beehive Homes found the buyer, the franchisee would pay Beehive Homes a $30,000 commission (6% of $500,000).
This commission is in addition to other transfer requirements, such as remedying any defaults under the franchise agreement, paying all amounts due to Beehive Homes, and concluding any legal proceedings against Beehive Homes. The transferee must also meet Beehive Homes' current requirements for new franchisees and execute the current franchise agreement.