What expenses does the Beehive Homes transfer fee reimburse the franchisor for?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU may not transfer YOUR franchise without OUR prior written consent. If WE consent to a transfer of the franchise by YOU, a fee of $2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers must be paid, by either YOU or the approved transferee to reimburse US for OUR reasonable legal, accounting, credit or other investigation expenses. This transfer fee is nonrefundable and is payable at the time of the approved transfer. If WE arrange the transferee for YOU, YOU must pay US a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For certain Unauthorized Transfers, YOU will pay US a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, a franchisee may not transfer their franchise without prior written consent from Beehive Homes. If Beehive Homes approves a transfer, either the franchisee or the approved transferee must pay a transfer fee. The amount of the transfer fee is either $2,500 for certain permitted transfers or $15,000 for other approved transfers. This fee reimburses Beehive Homes for reasonable legal, accounting, credit, or other investigation expenses that they incur during the transfer process. The transfer fee is nonrefundable and must be paid at the time of the approved transfer.
In the event that Beehive Homes arranges the transferee for the franchisee, the franchisee must pay Beehive Homes a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For certain unauthorized transfers, the franchisee will pay Beehive Homes a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
The FDD also includes a table outlining the transfer fee. The standard transfer fee is either $2,500 or $15,000, payable to Beehive Homes at the time of transfer. There is also an additional transfer fee, which is 10 times the calculated annual Franchise Royalties, also payable to Beehive Homes at the time of transfer. Finally, if Beehive Homes arranges the transfer, there is a transfer commission of 6% of the total price, payable to Beehive Homes at the time of transfer.