How is 'Control' defined in the context of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
e meanings indicated:
- 2.1. "Affiliate" means any natural person or entity which, directly or indirectly, controls, is controlled by, or is under common Control with, the subject Person.
- 2.2. "Agreement" means this Franchise Agreement, including all exhibits, attachments and addenda and all amendments and modifications thereto made in writing and approved by the parties hereto, and all renewals thereof made in accordance herewith.
- 2.3.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, "Control" is specifically defined in relation to affiliated persons or entities. The FDD states that 'Control' means possessing the power to direct or influence the management and policies of an entity. This influence can be exerted directly or indirectly.
This definition extends to the ability to direct the management and policies of an entity, or the power to veto major policy decisions. This power can be held through various means, including ownership of voting securities, contractual agreements, or other arrangements. Therefore, 'Control' is not limited to just ownership but encompasses any means by which a person or entity can exert significant influence over the operational and strategic decisions of another entity.
For a prospective Beehive Homes franchisee, this definition is important because it clarifies the scope of 'Affiliate' relationships that could have implications under the franchise agreement. For example, if a franchisee has a business partner who holds the power to veto major policy decisions, that partner would likely be considered an affiliate under the agreement due to their 'Control.' This could trigger certain obligations or restrictions outlined in the franchise agreement related to affiliates. Franchisees should carefully consider this definition when structuring their business and engaging with other entities to ensure compliance with the Beehive Homes franchise agreement.