What is the definition of 'Control' in the context of a Beehive Homes franchise agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Agreement, the following words and phrases shall have the 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. "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, "Control" is specifically defined within the franchise agreement. This definition clarifies the extent of influence and authority that individuals or entities can exert over the management and policies of the Beehive Homes franchise.
The agreement states that "Control" means possessing the power to direct the management and policies of an entity, or the power to veto major policy decisions. This power can be held directly or indirectly. It can be exercised through various means, including ownership of voting securities, contractual agreements, or other arrangements.
For a prospective Beehive Homes franchisee, understanding this definition is crucial. It clarifies who has the authority to make key decisions affecting the franchise's operations and strategic direction. This definition is important when considering the roles and responsibilities of different parties involved in the franchise, especially in cases where the franchisee is a legal entity such as a corporation, partnership, or limited liability company.