What constitutes Personal Property that the Beehive Homes franchisor has the right to purchase?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
of Home and Location. Franchisee will own, directly or indirectly, fee simple title to the real property and improvements (the "Real Property") that comprise the Home and
the Location, together with all personal property ("Personal Property") used in connection with the operation of the Franchise, at all times during the Term of this Agreement, subject to such liens and encumbrances as the Franchisor has agreed to in writing. Franchisee shall not transfer any interest in such Real Property or Personal Property except in compliance with this Agreement. The Franchisee shall maintain legal possession and Control of the Home and the Location at all times during the Term of this Agreement and shall promptly deliver to Franchisor a copy of any notice of default received from any mortgagee or other lien holder.
- 8.7. Conflict of Interest. Franchisee covenants that for the duration of this Agreement: (a) neither it nor any Equity Owner shall be employed by or have any direct or indirect financial or ownership interest in any other business providing services of the type described in this Agreement or in the Manual unless such other business is operated pursuant to a franchise granted by Franchisor or its Affiliates;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee will own the real property and improvements, referred to as the "Real Property," that comprise the Home and the Location. The franchisee also owns all personal property, referred to as "Personal Property," used in connection with the operation of the franchise. This ownership is subject to any liens and encumbrances that Beehive Homes has agreed to in writing. The franchisee cannot transfer any interest in the Real Property or Personal Property unless they comply with the agreement.
Beehive Homes retains the right to purchase this Personal Property. The exercise price for the Personal Property will be based on the tax basis of the property as shown on the franchisee's books and records for federal income tax purposes. The franchisee must obtain prior written consent from Beehive Homes before removing any of the Personal Property from the Home before the right and option expire.
This clause ensures that Beehive Homes can maintain control over the assets critical to the operation and brand standards of the franchise, especially in circumstances where the franchise agreement might be terminated. For a prospective franchisee, this means understanding that while they own the personal property, Beehive Homes has a buy-back option at a price determined by the tax basis, which may or may not reflect the fair market value. It is important to consider this when projecting potential returns on investment and asset valuation.