Can a Beehive Homes franchisee transfer an equity interest to a grantor trust?

According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee can transfer an equity interest to a grantor trust under specific conditions. The franchisee, or the Equity Owner if the franchisee is a legal entity, can transfer an Equity Interest to a grantor trust as defined in the Internal Revenue Code of 1986, provided that the transferor or the transferor and their spouse are the sole trustees, and the transferor and their Immediate Family Members are the sole beneficiaries of the grantor trust. This allowance provides a mechanism for estate planning and wealth management within the family.

This type of transfer is considered a 'Permitted Transfer,' but it must not result in a change of control of the franchise, equity interest, or the Beehive Homes location. At least 30 days before the proposed transfer, the franchisee must provide written notice to Beehive Homes, including the identity and contact information of all proposed transferees, and any other required information. Additionally, the franchisee must pay a nonrefundable processing fee of $2,500 with the transfer request and comply with Beehive Homes' current procedure for processing Permitted Transfers, including executing all required documents and the current form of the Franchise Agreement.

However, if the franchisee is assigning their interests to a corporation, partnership, or limited liability company, without Beehive Homes' prior written consent, the franchisee, assignee, and shareholders/partners/members cannot make or permit any assignment, transfer, or pledge of any equity interest in the assignee, including transfers in any entity that is a shareholder, partner, or member. Furthermore, if any shareholders, partners, or members are trustees or trusts, the beneficial interests in the trusts may not be assigned, transfers to successor trustees or special trustees may not be made, and the trust agreement may not be amended without Beehive Homes' prior written consent. Beehive Homes has not reviewed any trust documents and therefore the assignment does not constitute an approval by Beehive Homes of any documents relating to any shareholder's, partner's, or member's trust.