Can 'Control' of a Beehive Homes entity be exerted through a contract?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3. "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, or of the power to veto major policy decisions of an entity, whether through the ownership of voting securities, by contract, or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the definition of 'Control' includes the ability to direct the management and policies of an entity, or to veto major policy decisions, whether through ownership, contract, or other means. This definition is important for prospective franchisees as it clarifies how Beehive Homes defines control within the franchise agreement.
This broad definition of 'Control' means that a franchisee's ability to manage their Beehive Homes business could be influenced not only by direct ownership but also by contractual agreements they enter into. Beehive Homes retains the right to ensure compliance with the franchise agreement and assignment terms, and can examine franchisee records for this purpose.
For a prospective Beehive Homes franchisee, this definition highlights the importance of carefully reviewing all contracts related to the franchise, as these could grant control to another party. It also emphasizes the need to understand Beehive Homes' policies regarding ownership and management to avoid conflicts and ensure compliance.