What is the 'Effective Date' referring to in the context of the Beehive Homes franchise assignment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Assignment and Consent to Assignment of Franchise to a | ||
|---|---|---|
| [Corporation/Partnership/Limited Liability Company], dated, 2025 | ||
| ("Assignment"), is by and among | "Assignor"); [Corporation/Partnership/LLC Name], a [corporation/partnership/limited liability company] ("Assignee"); and those | BEE HIVE HOMES, INC., a Utah corporation ("Bee Hive Homes"); and (collectively, the |
| [shareholders/partners/members] | of Assignee (individually ["Shareholder"/"Partner"/"Member"] and collectively ["Shareholders"/"Partners"/"Members"]) listed on Exhibit A attached hereto and | |
| incorporated herein by reference. | Recitals | |
| (the "Franchise"). | A. Bee Hive Homes or its predecessor in interest issued to Assignor or its predecessor(s) in interest a Franchise Agreement dated (the "Franchise Agreement"), for the Bee Hive Homes Franchise located at | |
| Assignee. | B. Assignor requests Bee Hive Homes' consent to transfer the rights in the Franchise to | |
| Homes' consent to this Assignment is required under the terms of the Franchise Agreement. Agreement | C. Assignor, Assignee, and [Shareholders/Partners/Members] acknowledge that Bee Hive | |
| as follows: | The parties, intending to be legally bound and for good and valuable consideration, agree 1. The effective date of this Assignment is ("Effective Date"). | |
| Agreement and this Assignment. | 2. Bee Hive Homes consents to this Assignment subject to the provisions of the Franchise | |
| Assignor in the Franchise to Assignee, subject to the provisions of the Franchise Agreement. | 3. On the Effective Date, Assignor assigns and transfers all the right, title, and interest of |
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the "Effective Date" in the context of a franchise assignment refers to the date on which the assignment of the franchise agreement becomes active and legally binding. Specifically, it's the date when the assignor (the current franchisee) transfers their rights and interests in the franchise to the assignee (the new franchisee), subject to Beehive Homes' consent and the terms outlined in the franchise agreement.
The FDD states that on the Effective Date, the assignor transfers all rights, title, and interest in the franchise to the assignee, as per the franchise agreement. This means that from this date forward, the assignee assumes the responsibilities and benefits of operating the Beehive Homes franchise.
Furthermore, if the assignee's name includes any Beehive Homes trademarks, they must change it within 30 days after the Effective Date. This highlights the importance of the Effective Date as a trigger for certain obligations and actions related to the franchise transfer. The franchisor, Beehive Homes, must consent to the assignment for it to take effect.