In the context of a Beehive Homes franchise assignment, what does 'Assignor' refer to?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
IMITED LIABILITY COMPANY]
| | This Assignment and Consent to Assignment of Franchise to a | | |-----------------------------------|----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | [Corporation/Partnership/Limited Liability Company], dated, 2025 | | | ("Assignment"), is by and among | "Assignor"); [Corporation/Partnership/LLC Name], a [corporation/partnership/limited liability company] ("Assignee"); and those | BEE HIVE HOMES, INC., a Utah corporation ("Bee Hive Homes"); and (collectively, the | | [shareholders/partners/members] | | of Assignee (individually ["Shareholder"/"Partner"/"Member"] and collectively ["Shareholders"/"Partners"/"Members"]) listed on Exhibit A attached hereto and | | incorporated herein by reference. | Recitals | | | (the "Franchise"). | | A. Bee Hive Homes or its predecessor in interest issued to Assignor or its predecessor(s) in interest a Franchise Agreement dated (the "Franchise Agreement"), for the Bee Hive Homes Franchise located at | | Assignee. | | B. Assignor requests Bee Hive Homes' consent to transfer the rights in the Franchise to | | | Homes' consent to this Assignment is required under the terms of the Franchise Agreement. Agreement | C. Assignor, Assignee, and [Shareholders/Partners/Members] acknowledge that Bee Hive | | as follows: | | The parties, intending to be legally bound and for good and valuable consideration, agree 1. The effective date of this Assignment is ("Effective Date"). | | Agreement and this Assignment. | | 2. Bee Hive Homes consents to this Assignment subject to the provisions of the Franchise | | | Assignor in the Franchise to Assignee, subject to the provisions of the Franchise Agreement. | 3. On the Effective Date, Assignor assigns and transfers all the right, title, and interest of | 4. Assignee must pay all fees and perform all obligations under the Franchise Agreement.
- Assignor agrees to remain personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, and is not released from any obligations to Bee Hive Homes by this Assignment. After the date of this Assignment, all references to Franchisee in the Franchise Agreement shall refer to both Assignor and Assignee both jointly and severally.
[Alternate paragraph to be used for Assignment to Corporation.]
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, in the context of an assignment of a franchise, the 'Assignor' refers to the existing franchisee who is transferring their rights in the franchise to another party, known as the 'Assignee'.
Specifically, the Beehive Homes FDD outlines that the Assignor transfers all rights, title, and interest in the franchise to the Assignee on the effective date of the assignment, subject to the provisions of the Franchise Agreement. However, the Assignor isn't fully released from their obligations. The document states that the Assignor agrees to remain personally bound by and personally liable for any breaches of the Franchise Agreement, unless Beehive Homes provides written consent otherwise.
This means that even after the assignment, the original franchisee (Assignor) may still be held responsible for the performance of the franchise and adherence to the Franchise Agreement terms, jointly and severally with the new franchisee (Assignee). This condition provides Beehive Homes with an added layer of security and recourse in ensuring the franchise continues to operate according to the established standards and agreements.