What is considered an 'Authorized Transfer' for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Assumption Agreement.
13.4. Authorized Transfers. An Authorized Transfer means any Transfer of an Equity Interest in compliance with this Section 13.4 and with the advance written consent of Franchisor. Franchisor's consent shall be subject to, but not by way of limitation, the following conditions, all of which must be satisfied at or before the date of closing of the Authorized Transfer. Franchisee or its Equity Owner(s) proposing the Transfer shall deliver to Franchisor a written notice (the "Authorized Transfer Request") which identifies, among other things the identity of the proposed transferee and the terms and conditions of the proposed transfer and shall provide all other information reasonably requested by the Franchisor. The Franchisor shall give its written consent or notification of withholding its consent to Franchisee and its Equity Owner(s) within thirty (30) days after compliance or other assurance satisfactoryto Franchisor of compliance with the following conditions:
- (a) Franchisee or its Equity Owner(s) proposing the Transfer shall pay to Franchisor, with the Authorized Transfer Request, a nonrefundable transfer fee in the amount of Fifteen Thousand Dollars ($15,000.00), to reimburse Franchisor for its reasonable legal, accounting, credit, and investigation expenses incurred in connection with the proposed transfer;
(b) 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);
(c) Franchisee or its Equity Owner(s) proposing the Transfer shall remedy all defaults under this Agreement and all other agreements they may have with Franchisor or its Affiliates; shall pay all amounts due to Franchisor and its Affiliates through the date of closing of the Transfer;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, an 'Authorized Transfer' refers to any transfer of equity interest that complies with Section 13.4 of the agreement and has the advance written consent of Beehive Homes. This consent is subject to specific conditions that must be met before the transfer can be finalized.
These conditions include the payment of a commission equal to six percent (6%) of the gross transfer price if Beehive Homes or its affiliate finds or introduces the proposed transferee to the franchisee or its equity owner. Additionally, the franchisee must remedy all defaults under the agreement, pay all amounts due to Beehive Homes and its affiliates, and resolve any pending legal issues to Beehive Homes' satisfaction. The franchisee must also execute Beehive Homes' current form of voluntary termination agreement, which may include a general release.
Furthermore, the transferee must meet all of Beehive Homes' current requirements for new franchisees, submit all requested information to determine their qualifications, and execute Beehive Homes' current form of new franchise agreement and all ancillary forms, including the Franchisor's Guarantee and Assumption Agreement. These stipulations ensure that Beehive Homes maintains control over who becomes a franchisee and that all financial and legal obligations are properly addressed during the transfer process.