What constitutes Real Property that the Beehive Homes franchisor has the right to purchase from a Beehive Homes franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the "Real Property" that the Beehive Homes franchisor has the right to purchase from a franchisee consists of the fee simple title to the real property and improvements that comprise the Home and the Location. The franchisee owns this Real Property directly or indirectly. The franchisee also owns all personal property used in connection with the operation of the franchise. However, this ownership is subject to any liens and encumbrances that the franchisor has agreed to in writing.
This means that a prospective Beehive Homes franchisee will own the physical building and land where the Beehive Homes is located, as well as the personal property used to operate the franchise. However, the franchisor retains certain rights, such as the right to purchase the property under certain conditions, and the franchisee's ownership is subject to any existing liens or encumbrances that the franchisor has approved. The franchisee cannot transfer any interest in the Real Property or Personal Property except in compliance with the Franchise Agreement.
It is important for a prospective franchisee to understand the terms and conditions under which Beehive Homes can exercise its right to purchase the property, as well as any restrictions on the franchisee's ability to transfer ownership. The franchisee must maintain legal possession and control of the Home and Location during the term of the agreement and promptly provide the franchisor with any notice of default received from a mortgagee or other lien holder. This ensures that the franchisor is aware of any potential issues that could affect the property or the operation of the franchise.