What conditions must an assignee meet to be approved for a contract assignment by Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
| d. Termination by YOU | Not Applicable | Not Applicable |
| e. Termination by US without | Not Applicable | Not Applicable |
| cause | ||
| f. Termination by US with cause | Section 14 | WE can terminate if YOU commit certain events of default or other breaches of the Franchise Agreement |
| g. "Cause" defined - curable defaults | Section 14.1 | YOU have 30 days to cure: nonpayment of fees, nonperformance of franchise agreement where performance can be completed |
| h. “Cause” defined - non- curable defaults | Section 14.1 | non-curable defaults: bankruptcy (may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, trademark misuse |
| i. YOUR obligations on termination/nonrenewal | Section 14.4; 14.5; 14.6 & 14.7 | pay amounts due; sell Home to Franchisor |
| j. Assignment of contract by | Section 13.1 | Assignee reasonably willing and able to |
| US | perform | |
| k. "Transfer" by YOU - | Section 2.20; | includes transfer of contract or assets and |
| defined | 13.2 | change in ownership |
| l. OUR approval of transfer | Section 13.4 | prior written approval but not |
| by YOU | unreasonably withheld | |
| m. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 25–27)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, an assignee must be reasonably willing and able to perform the obligations of the franchise agreement in order to be approved for a contract assignment. This requirement ensures that any party taking over the franchise is capable of maintaining the standards and fulfilling the responsibilities outlined in the agreement.
Additionally, Beehive Homes' approval of a transfer by a franchisee requires the payment of fees, the execution of a new franchise agreement, and completion of training. These conditions protect Beehive Homes' interests by ensuring that the new franchisee is fully invested in the brand, properly trained, and compliant with the current franchise terms. The franchisor also retains the right of first refusal to acquire the franchisee's business, allowing them to match any offer made by a potential buyer.
These transfer conditions are typical in franchising, as franchisors need to maintain brand consistency and protect their trademarks. The requirement for a new franchise agreement ensures that the assignee is bound by the most current terms and conditions, which may have evolved since the original agreement. The training requirement further supports operational standards and service quality.
It is important for prospective Beehive Homes franchisees to understand these conditions for assignment, as they will impact the ability to sell or transfer the franchise in the future. Franchisees should carefully review Section 13 of the franchise agreement, as referenced in Item 17, to fully understand their rights and obligations regarding transfers and assignments.