To whom can a Beehive Homes equity interest be transferred upon the death of a franchisee or equity owner?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Transfer On Death.
Upon the death of Franchisee or, if Franchisee is a corporation or other legal entity an Equity Owner, the Equity Interest of the deceased Franchisee or Equity Owner may be Transferred in accordance with such person's will or, if such person dies intestate, in accordance with laws of intestacy governing the distribution of such person's estate, provided that: (i) the transfer on death is to an Immediate Family Member(s) or to a legal entity formed and owned by such Immediate Family Member(s); (ii) within six (6) months after the date of death, such Immediate Family Member(s), or a legal entity formed and owned by such Immediate Family Member(s), meets all of Franchisor's then current requirements for new franchisees and approval by Franchisor, which approval may not be unreasonably withheld; and (iii) such Immediate Family Member(s) or a legal entity formed and owned by such Immediate Family Member(s) signs the Franchisor's then current form of Franchise Agreement, and if the legal entity formed and owned by the Immediate Family Member(s) signs the Franchise Agreement, the Immediate Family Member(s) shall sign the Franchisor's Guarantee and Assumption Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, upon the death of a franchisee or equity owner, the equity interest can be transferred according to the deceased's will or state intestacy laws. However, this transfer is specifically limited to immediate family members or a legal entity that is formed and owned by immediate family members.
To complete the transfer, the immediate family member or the legal entity they own must meet all of Beehive Homes' then-current requirements for new franchisees. This requirement ensures that the new owner is qualified to operate the franchise according to Beehive Homes' standards. The franchisor's approval cannot be unreasonably withheld, providing some assurance to the family that a qualified heir will be approved.
Additionally, the immediate family member or their legal entity must sign Beehive Homes' current form of Franchise Agreement. If a legal entity signs the agreement, the immediate family member must also sign Beehive Homes' Guarantee and Assumption Agreement. This ensures that the family member personally guarantees the entity's obligations under the Franchise Agreement. This process ensures that Beehive Homes maintains control over who operates its franchises, even in the event of a franchisee's death, while also providing a mechanism for the business to stay within the family.