What is the definition of 'Real Property' in the context of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will own, directly or indirectly, fee simple title to the real property and improvements (the "Real Property") that comprise the Home and
the Location, together with all personal property ("Personal Property") used in connection with the operation of the Franchise, at all times during the Term of this Agreement, subject to such liens and encumbrances as the Franchisor has agreed to in writing. Franchisee shall not transfer any interest in such Real Property or Personal Property except in compliance with this Agreement. The Franchisee shall maintain legal possession and Control of the Home and the Location at all times during the Term of this Agreement and shall promptly deliver to Franchisor a copy of any notice of default received from any mortgagee or other lien holder.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, 'Real Property' is defined as the fee simple title to the real property and improvements that comprise the Home and the Location. This means the franchisee owns the land and buildings where the Beehive Homes business operates.
This ownership is subject to any liens and encumbrances that Beehive Homes has agreed to in writing. A lien is a right to keep possession of property belonging to another person until a debt owed by that person is discharged. An encumbrance is a claim or liability that is attached to property and that may lessen its value, such as a mortgage or a lien. The franchisee cannot transfer any interest in the Real Property except in compliance with the Franchise Agreement.
The franchisee must maintain legal possession and control of the Home and the Location throughout the term of the agreement. They are also required to promptly provide Beehive Homes with a copy of any default notice received from a mortgagee or other lien holder. This ensures Beehive Homes is aware of any potential issues affecting the property and the franchisee's ability to operate the business.