Does the Beehive Homes franchisee have to use the current form of Franchise Agreement for a 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 or its Equity Owner(s) must comply with the franchisor's current procedure for processing permitted transfers. This includes executing all documents required by Beehive Homes, including the then-current form of the Franchise Agreement. This agreement ensures that the proposed transferees assume all duties and obligations of the transferor relating to the agreement, the home, and any other agreements between Beehive Homes and the transferor.
This requirement means that if a franchisee wishes to transfer their franchise to a new owner, the new owner must sign the most up-to-date version of the Beehive Homes Franchise Agreement. This ensures that all franchisees are operating under the same terms and conditions, which can help maintain consistency and standards across the Beehive Homes system.
It is important to note that this requirement is part of the conditions for 'Permitted Transfers,' and failure to comply with this and other conditions could result in the transfer being classified as an 'Unauthorized Transfer.' Additionally, the franchisee or its Equity Owner(s) must pay a nonrefundable processing fee of $2,500 with the Permitted Transfer Request.