To what extent do the modifications described in this section affect the other terms and provisions in the Beehive Homes Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Assignor agrees to remain personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, and is not released from any obligations to Bee Hive Homes by this Assignment. After the date of this Assignment, all references to Franchisee in the Franchise Agreement shall refer to both Assignor and Assignee both jointly and severally.
[Alternate paragraph to be used for Assignment to Corporation.]
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- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Shareholders may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Shareholder;
- d) the creation of new or additional equity interests in Assignee; or
- e) any amendment of the terms of any organizational documents relating to Assignee.
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- All terms and conditions of the Franchise Agreement remain in full force and effect except as modified by this Assignment including, but not limited to, the terms and conditions of Paragraph 13.3(c) of the Franchise Agreement in the event of the death of Assignor.
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- If Assignee's name or the name of any trust or entity with an equity interest in Assignee (collectively "Assignee's Name") contains any reference to "Bee Hive", "BeeHive", or any derivative thereof, or any other Bee Hive Homes trademark, then Assignor, Assignee, and [Shareholders/Partners/Members] covenant and agree (i) that they will cause Assignee's Name to be changed, within 30 days after the Effective Date, to delete any such reference without further consideration from Bee Hive Homes; (ii) that they will not challenge Bee Hive Homes use of any trade name, trademark, or internet domain name on the grounds that it: (a) is similar to Assignee's Name; (b) is likely to cause confusion; or (c) dilutes the value of the trade name; and (iii) that Assignee's Name shall not be used in connection with any trade or business conducted by Assignor, Assignee, or [Shareholders/Partners/Members] except the Bee Hive Homes Franchise business.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, an assignment of the franchise agreement does not generally alter the original terms, except as specifically outlined in the assignment itself. The assignor (original franchisee) remains bound by the original agreement, and all references to the franchisee in the original agreement apply jointly and severally to both the assignor and the assignee (new franchisee). This means both parties share responsibility for upholding the franchise agreement terms.
Beehive Homes' consent is required for any transfer of the franchise, pledging, or encumbering the franchise. This also applies to any transfer of equity interest in the assignee, creation of new equity interests, or amendments to the assignee's organizational documents. These restrictions ensure that Beehive Homes maintains control over who operates their franchises and that the financial structure of the franchisee remains stable and aligned with Beehive Homes' interests.
Specifically, the terms and conditions of the Franchise Agreement remain in full force and effect except as modified by the Assignment including, but not limited to, the terms and conditions of Paragraph 13.3(c) of the Franchise Agreement in the event of the death of Assignor. Furthermore, if the assignee's name includes any Beehive Homes trademarks, the assignee must change its name within 30 days of the effective date of the assignment. This ensures that the assignee does not create confusion or dilute the Beehive Homes trademark. These stipulations protect Beehive Homes' brand and operational standards while allowing for franchise transfer under specific, controlled conditions.