Who is considered an 'Equity Owner' in the context of a Beehive Homes franchise?

According to the 2025 Beehive Homes Franchise Disclosure Document, an 'Equity Owner' is defined as the direct or indirect owner of any Equity Interest in the franchise, the Home, or the Franchise Agreement. An 'Equity Interest' is further defined as any direct or indirect legal or beneficial interest in the Franchise, the Home or the Franchise Agreement.

This definition is important because Beehive Homes requires certain actions to be taken by and places certain restrictions upon Equity Owners. For example, the franchisee, including its Equity Owners, if applicable, must acknowledge that they have received the Beehive Homes Franchise Agreement at least seven calendar days before the agreement is executed. They also acknowledge that they have read and understand all obligations being undertaken and have had the opportunity to consult with advisors.

Additionally, in the context of assigning a franchise agreement, Beehive Homes requires consent for any assignment, transfer, or pledge of any equity interest in the assignee, including transfers in any entity that is a Shareholder, Partner, or Member. This also applies to the creation of new or additional equity interests in the assignee. These restrictions ensure that Beehive Homes maintains control over who has a financial stake in its franchises and that any changes in ownership are subject to their approval.