For a Beehive Homes franchise, what is the purpose of the Authorized Transfer Request?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Authorized Transfer. Franchisee or its Equity Owner(s) proposing the Transfer shall deliver to Franchisor a written notice (the "Authorized Transfer Request") which identifies, among other things the identity of the proposed transferee and the terms and conditions of the proposed transfer and shall provide all other information reasonably requested by the Franchisor. The Franchisor shall give its written consent or notification of withholding its consent to Franchisee and its Equity Owner(s) within thirty (30) days after compliance or other assurance satisfactoryto Franchisor of compliance with the following conditions:
- (a) Franchisee or its Equity Owner(s) proposing the Transfer shall pay to Franchisor, with the Authorized Transfer Request, a nonrefundable transfer fee in the amount of Fifteen Thousand Dollars ($15,000.00), to reimburse Franchisor for its reasonable legal, accounting, credit, and investigation expenses incurred in connection with
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Authorized Transfer Request serves as a formal written notice to the franchisor when a franchisee or equity owner proposes to transfer ownership of the franchise. This request is crucial because it allows Beehive Homes to evaluate the proposed transfer and ensure that the potential new owner meets their standards. The request must include the identity of the proposed transferee, the terms and conditions of the transfer, and any other information Beehive Homes reasonably requests.
Submitting an Authorized Transfer Request is a prerequisite for obtaining Beehive Homes' consent for the transfer. The franchisor has 30 days to respond to the request, either granting or withholding consent, after the franchisee has met all the necessary conditions. These conditions include paying a nonrefundable transfer fee of $15,000 to cover the franchisor's expenses for legal, accounting, credit, and investigation costs related to the transfer.
In essence, the Authorized Transfer Request is a mechanism that allows Beehive Homes to maintain control over who operates their franchises, ensuring brand consistency and protecting their business model. It also allows Beehive Homes to recoup expenses incurred while assessing a potential transfer. Failing to obtain proper authorization through this process can result in an unauthorized transfer, which carries significant financial penalties.