For a Beehive Homes franchise, what form of Franchise Agreement must be signed by the transferee after death?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Beehive Homes Franchise Disclosure Document, in the event of the death of a franchisee or equity owner, the individual or entity inheriting the interest must sign specific agreements to continue the franchise. If the transfer is to an immediate family member or a legal entity owned by them, they must sign Beehive Homes' then-current form of Franchise Agreement. Additionally, if a legal entity is signing the Franchise Agreement, the immediate family member(s) must also sign Beehive Homes' Guarantee and Assumption Agreement.
This requirement ensures that the new owner(s) of the Beehive Homes franchise are bound by the current terms and conditions set forth by the franchisor. It also allows Beehive Homes to ensure that the new franchisee meets their current standards for franchisees. The stipulation that the immediate family member(s) sign a Guarantee and Assumption Agreement when a legal entity is involved provides an additional layer of security for Beehive Homes, ensuring that individuals stand behind the entity's obligations.
This transfer process is contingent upon the immediate family member(s) or their legal entity meeting all of Beehive Homes' then-current requirements for new franchisees within six months of the death. This approval process cannot be unreasonably withheld by Beehive Homes. This condition ensures that the new operators are qualified and capable of maintaining the standards of the franchise.
In summary, upon the death of a Beehive Homes franchisee, the transfer of the franchise to an immediate family member or their legal entity requires signing the current Franchise Agreement and, if applicable, a Guarantee and Assumption Agreement, contingent on meeting the franchisor's requirements.