What is the definition of 'Control' in the context of Beehive Homes Permitted Transfers?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Permitted Transfers. Franchisee, and if Franchisee is a corporation or other legal entity, its Equity Owner(s) (or any transferee Equity Owner approved by Franchisor), may engage in Permitted Transfers, as defined in this Section 13.3, only if: (i) all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home; (ii) Franchisee or its Equity Owner(s) delivers to Franchisor, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request") which includes the identity and contact information for all proposed transferees and any other information Franchisor may require in order to review the proposed Permitted Transfer; (iii) Franchisee or its EquityOwner(s) pays to Franchisor a nonrefundable processing fee of Two Thousand Five Hundred Dollars ($2,500.00) with the Permitted Transfer Request; and (iv) Franchisee or its EquityOwner(s) complies with Franchisor's then current procedure for processing Permitted Transfers, including the execution of all documents required by Franchisor, including the then current form of Franchise Agreement in use by the Franchisor, for the assumption by proposed transferees of all duties and
obligations of the transferor relating to this Agreement, the Home and any other agreements between Fran
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee, or its Equity Owner(s), may engage in Permitted Transfers only if all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home. The FDD does not define the term 'Control' in the context of permitted transfers.
Because the FDD does not define 'Control,' it is important for a prospective franchisee to seek clarification from Beehive Homes regarding what constitutes a change of control. This is crucial for understanding the limitations on transferring ownership interests in the franchise.
Without a clear definition, franchisees may inadvertently violate the transfer restrictions, potentially leading to disputes with Beehive Homes. Therefore, direct communication with the franchisor is essential to fully grasp the implications of this clause.