What is the definition of 'Affiliate Transfer' for a Beehive Homes franchise?

According to the 2025 Beehive Homes Franchise Disclosure Document, an Affiliate Transfer involves a franchisee or, if the franchisee is a corporation or other legal entity, its Equity Owner(s), transferring an Equity Interest to an Immediate Family Member of Franchisee, or to another Equity Owner or to an Immediate Family Member of another Equity Owner.

This type of transfer is permissible under specific conditions. The transfer must not relieve the transferring Equity Owner of any obligations under the Franchise Agreement or Equity Owner's Guarantee and Assumption of Obligations of this Agreement. This means that even after the transfer, the original Equity Owner remains responsible for fulfilling the duties and obligations outlined in the agreement.

For a prospective Beehive Homes franchisee, understanding the conditions surrounding an Affiliate Transfer is crucial. It allows for internal restructuring or transfer of ownership within the franchisee's immediate family or among existing equity owners without necessarily triggering a full transfer review by Beehive Homes. However, it's important to note that this type of transfer does not release the original owner from their obligations, ensuring continued accountability to the franchise agreement.