What is the first condition that must be met for a Beehive Homes franchisee to engage in Permitted Transfers?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Permitted Transfers. Franchisee, and if Franchisee is a corporation or other legal entity, its Equity Owner(s) (or any transferee Equity Owner approved by Franchisor), may engage in Permitted Transfers, as defined in this Section 13.3, only if: (i) all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home; (ii) Franchisee or its Equity Owner(s) delivers to Franchisor, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request") which includes the identity and contact information for all proposed transferees and any other information Franchisor may require in order to review the proposed Permitted Transfer; (iii) Franchisee or its EquityOwner(s) pays to Franchisor a nonrefundable processing fee of Two Thousand Five Hundred Dollars ($2,500.00) with the Permitted Transfer Request; and (iv) Franchisee or its EquityOwner(s) complies with Franchisor's then current procedure for processing Permitted Transfers, including the execution of all documents required by Franchisor, including the then current form of Franchise Agreement in use by the Franchisor, for the assumption by proposed transferees of all duties and
obligations of the transferor relating to this Agreement, the Home and any other agreements between Fran
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee may engage in a Permitted Transfer only if all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home. This means that while a franchisee can transfer ownership or equity, they cannot transfer so much that it results in a change of control of the franchise, equity interest, or the Beehive Homes location itself.
In addition to this primary condition, the franchisee must also fulfill other requirements. They must provide written notice to Beehive Homes at least 30 days before the proposed transfer, including the identity and contact information of all proposed transferees and any other information Beehive Homes may require. The franchisee must also pay a nonrefundable processing fee of $2,500 with the Permitted Transfer Request.
Finally, the franchisee must comply with Beehive Homes' then-current procedure for processing Permitted Transfers, including executing all required documents. These documents include the then-current form of Franchise Agreement in use by Beehive Homes, for the assumption by proposed transferees of all duties and obligations of the transferor relating to the Agreement, the Home, and any other agreements between Beehive Homes and the transferor. These conditions ensure that Beehive Homes maintains control over who becomes a franchisee and that all necessary obligations are transferred to the new party.