What documents are required by Beehive Homes for the assumption of duties and obligations by proposed transferees?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee or its Equity Owner(s) proposing the Transfer shall remedy all defaults under this Agreement and all other agreements they may have with Franchisor or its Affiliates; shall pay all amounts due to Franchisor and its Affiliates through the date of closing of the Transfer; shall conclude to Franchisor's satisfaction, or provide adequate security for, any suit, action, or proceeding pending or threatened against Franchisor or its Affiliates, which may result in any liability on the part of Franchisor or its Affiliates; and shall execute Franchisor's then current form of voluntary termination agreement, which may include a general release, covering termination of this Agreement; and
- (d) Transferee or its Equity Owner(s) shall meet all of Franchisor's then current requirements for new franchisees; shall submit to Franchisor all information reasonably requested by Franchisor to determine qualification as transferees; and shall execute Franchisor's then current form of new franchise agreement and all ancillary forms, including the Franchisor's Guarantee and Assumption Agreement by the transferee's EquityOwner(s), if any.
- 13.5. Unauthorized Transfer. If Franchisee engages in an Unauthorized Transfer as provided in Section 13.2 or Section 13.6, Franchisee hereby covenants and promises to pay to Franchisor, in addition to all other costs and expenses provided for in this Agreement, an additional transfer fee in an amount equal to ten (10) times [5% times [12 times [the greater of (i) the average published monthly rate per resident of the Home during the 12 months preceding the Unauthorized Transfer, times the number of beds in the Home, or (ii) the average published monthly rate per resident of the home which has been in operation for the preceding 18 month and is in nearest geographic proximity to the Home , times the number of beds in the Home]]]. The parties hereto agree that this additional transfer fee is not a penalty, but the parties' best estimate of the anticipated damage to Franchisor resulting from the Unauthorized Transfer.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a transferee must meet all of Beehive Homes' current requirements for new franchisees and submit all information reasonably requested by Beehive Homes to determine their qualifications as transferees. The transferee must also execute Beehive Homes' then-current form of new franchise agreement and all ancillary forms, including the Franchisor's Guarantee and Assumption Agreement by the transferee's Equity Owner(s), if any.
Additionally, the franchisee proposing the transfer must remedy all defaults under the existing agreement and any other agreements with Beehive Homes or its affiliates. They must also pay all amounts due to Beehive Homes and its affiliates through the date of closing the transfer. The franchisee must resolve to Beehive Homes' satisfaction any pending or threatened legal actions against Beehive Homes or its affiliates, or provide adequate security for them. They must also execute Beehive Homes' current form of voluntary termination agreement, which may include a general release, covering termination of the agreement.
In the event of an unauthorized transfer, the franchisee must pay an additional transfer fee. This fee is calculated as ten times [5% times [12 times [the greater of (i) the average published monthly rate per resident of the Home during the 12 months preceding the Unauthorized Transfer, times the number of beds in the Home, or (ii) the average published monthly rate per resident of the home which has been in operation for the preceding 18 month and is in nearest geographic proximity to the Home , times the number of beds in the Home]]]. Beehive Homes states that this additional transfer fee is not a penalty but the parties' best estimate of the anticipated damage to Beehive Homes resulting from the Unauthorized Transfer.