What documents might a Beehive Homes franchisee be required to execute for a Permitted Transfer?
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 owners engaging in a Permitted Transfer must comply with the franchisor's procedures, which include executing all documents required by Beehive Homes. These documents include the then-current form of the Franchise Agreement used by Beehive Homes, ensuring that the proposed transferees assume all duties and obligations of the transferor. This encompasses responsibilities related to the agreement, the Home, and any other agreements between the franchisor and transferor.
Specifically, the franchisee must ensure that the proposed transferees agree to take on all responsibilities of the transferring party. This protects Beehive Homes by ensuring that the new operators are legally bound to uphold the standards and obligations of the franchise system. The new franchisee will be held to the same standards as the original franchisee.
In addition to executing required documents, the franchisee or equity owner must provide a written notice to Beehive Homes at least 30 days before the proposed transfer, including the identity and contact information of all proposed transferees. They must also pay a nonrefundable processing fee of $2,500 with the transfer request. The transferee must meet all of Beehive Homes' current requirements for new franchisees, submit all requested information to determine their qualifications, and execute the current form of the new franchise agreement and all ancillary forms, including the Guaranty and Assumption Agreement by the transferee's Equity Owners, if any.
These requirements ensure that Beehive Homes maintains control over who becomes a franchisee and that all new franchisees meet their standards. The Permitted Transfer process allows for transfers to affiliates or through trusts, provided that these transfers do not result in a change of control and that all obligations are met.