Does the Beehive Homes franchisee have to execute all documents required by the franchisor for a Permitted Transfer?
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 must comply with the franchisor's procedures for processing Permitted Transfers. This includes executing all documents required by Beehive Homes, such as the current form of the Franchise Agreement. These documents ensure the proposed transferees assume all duties and obligations of the transferor related to the agreement, the Home, and any other agreements between Beehive Homes and the transferor.
Prior to a Permitted Transfer, the franchisee must provide Beehive Homes with a written notice at least 30 days in advance. This notice, called the "Permitted Transfer Request," must include the identity and contact information of all proposed transferees, along with any other information Beehive Homes requires to review the proposed transfer. Additionally, the franchisee must pay a nonrefundable processing fee of $2,500.00 with the Permitted Transfer Request.
These requirements ensure that Beehive Homes maintains control over who becomes a franchisee and that the new franchisee is fully aware of their obligations. The new franchisee must also meet all of Beehive Homes' current requirements for new franchisees. This includes submitting all information reasonably requested by Beehive Homes to determine their qualifications as transferees and executing the current form of the new franchise agreement and all ancillary forms, including the Franchisor's Guarantee and Assumption Agreement by the transferee's Equity Owner(s), if any.
Failure to comply with these transfer requirements could result in the transfer being classified as an Unauthorized Transfer, which carries significant financial penalties. For example, if Beehive Homes or its affiliate finds the transferee, the franchisee must pay a commission equal to six percent (6%) of the gross transfer price. Furthermore, the franchisee must remedy all defaults under the agreement, pay all amounts due to Beehive Homes, and provide adequate security for any pending legal actions.