What must a Beehive Homes franchisee do regarding defaults before transferring?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee or its Equity Owner(s) proposing the Transfer shall remedy all defaults under this Agreement and all other agreements they may have with Franchisor or its Affiliates; shall pay all amounts due to Franchisor and its Affiliates through the date of closing of the Transfer; shall conclude to Franchisor's satisfaction, or provide adequate security for, any suit, action, or proceeding pending or threatened against Franchisor or its Affiliates, which may result in any liability on the part of Franchisor or its Affiliates; and shall execute Franchisor's then current form of voluntary termination agreement, which may include a general release, covering termination of this Agreement; and
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee proposing a transfer must remedy all defaults under the Franchise Agreement and any other agreements with Beehive Homes or its affiliates. This includes paying all amounts due to Beehive Homes and its affiliates through the date the transfer closes.
Additionally, the franchisee must resolve to Beehive Homes' satisfaction any pending or threatened legal actions against Beehive Homes or its affiliates that could result in liability for them. The franchisee must also execute Beehive Homes' current voluntary termination agreement, which may include a general release, covering the termination of the Franchise Agreement.
These requirements ensure that Beehive Homes is not left with any outstanding issues or liabilities after a transfer. By requiring the franchisee to resolve all defaults and legal matters, Beehive Homes protects its interests and maintains the integrity of the franchise system. This is a fairly standard practice in franchising, as franchisors typically want to ensure a clean break and avoid inheriting problems from the previous franchisee.