What is the definition of 'Permitted Transfers' regarding the Beehive Homes transfer fee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU may not transfer YOUR franchise without OUR prior written consent. If WE consent to a transfer of the franchise by YOU, a fee of $2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers must be paid, by either YOU or the approved transferee to reimburse US for OUR reasonable legal, accounting, credit or other investigation expenses. This transfer fee is nonrefundable and is payable at the time of the approved transfer. If WE arrange the transferee for YOU, YOU must pay US a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For certain Unauthorized Transfers, YOU will pay US a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee must obtain written consent from Beehive Homes before transferring their franchise. If Beehive Homes approves the transfer, a fee is required to cover legal, accounting, credit, and other investigative expenses. The amount of this transfer fee varies: $2,500.00 for certain 'Permitted Transfers' and $15,000.00 for other approved transfers. This fee is nonrefundable and due at the time of the approved transfer.
If Beehive Homes arranges the transferee, the franchisee must pay Beehive Homes a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For certain 'Unauthorized Transfers', the franchisee will pay Beehive Homes a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
The FDD does not define what constitutes a 'Permitted Transfer' versus other approved or unauthorized transfers. A prospective franchisee should seek clarification from Beehive Homes regarding the specific conditions that define a 'Permitted Transfer' to understand when the lower $2,500 transfer fee applies.