Must a Beehive Homes franchisee remedy all defaults under all agreements 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 they have 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, or provide adequate security for, 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 form of voluntary termination agreement, which may include a general release, covering termination of the agreement.
This requirement ensures that Beehive Homes maintains the integrity of its franchise system and that any outstanding obligations are resolved before a transfer is completed. For a prospective franchisee, this means understanding all existing agreements and ensuring full compliance to facilitate a smooth transfer process should they decide to sell their franchise in the future.