Does the franchisee for Beehive Homes grant consent to the franchisor to file security agreements?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
15.2. Franchisor's Security Interest. Franchisee hereby acknowledges and agrees, and hereby grants consent to the Franchisor, that in additional to all other rights and remedies granted to the Franchisor pursuant to this Agreement, the Franchisor may file security agreements with respect to the Personal Property with the Secretary of State (or similar public official) for the state in which the Personal Property is located and the Franchisor may record a notice of interest, mortgage, deed of trust or similar security instrument with respect to the Real Property (the Home) with the County Recorder (or similar public official) for the county in which the Real Property is located. Such security instruments may be filed and/or recorded at such times and in such places as Franchisor may determine to be appropriate to protect Franchisor's rights under this Agreement. Franchisee hereby irrevocably appoints Franchisor as its attorney-in-fact to complete the foregoing steps for and on the behalf of the Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the franchisee acknowledges and agrees to grant consent to the franchisor to file security agreements. Specifically, Beehive Homes is permitted to file security agreements regarding the franchisee's personal property with the Secretary of State (or similar public official) where the personal property is located. Additionally, Beehive Homes can record a notice of interest, mortgage, deed of trust, or similar security instrument regarding the real property (the Home) with the County Recorder (or similar public official) in the county where the real property is located.
These security instruments can be filed or recorded at times and places Beehive Homes deems appropriate to protect its rights under the Franchise Agreement. The franchisee also irrevocably appoints Beehive Homes as their attorney-in-fact to complete these steps on their behalf. This means Beehive Homes has the legal authority to act for the franchisee in filing these security agreements.
This clause is significant for prospective franchisees as it gives Beehive Homes a secured interest in the franchisee's assets, both personal and real property, related to the Beehive Homes business. This is a mechanism for Beehive Homes to protect its investment and ensure compliance with the franchise agreement. Franchisees should understand the implications of granting this security interest and how it might affect their ability to obtain financing or sell the business in the future.