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

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

This definition is important for prospective franchisees because it clarifies who the franchisor considers to have a vested interest in the Beehive Homes franchise. This includes not only those with direct ownership but also those with indirect or beneficial interests. This broad definition ensures that all parties with a financial stake or control over the franchise are subject to the franchisor's oversight and requirements.

Furthermore, the FDD emphasizes that if the Beehive Homes franchise is assigned to a corporation, partnership, or limited liability company, any transfer or pledge of equity interest in the assignee requires prior written consent from Beehive Homes. This includes transfers in any entity that is a shareholder, partner, or member, as well as the creation of new equity interests. This provision allows Beehive Homes to maintain control over who has a financial stake in its franchises and to ensure that all equity owners meet its standards and qualifications.

In the context of assigning a franchise, the FDD specifies that 'equity interests' include not only direct ownership but also interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home. This means that even if someone's investment is structured as a loan, if it carries a share of the business's risks or rewards, they may be considered an equity owner. This is a critical consideration for franchisees structuring their financing and ownership, as it could impact their ability to transfer or assign the franchise without the franchisor's approval.