Can the Beehive Homes franchisor change the procedure for processing Permitted Transfers?
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 Franchisor and transferor. Permitte
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisor can change the procedure for processing Permitted Transfers.
The FDD states that a franchisee or its Equity Owner(s) must comply with Beehive Homes' then-current procedure for processing Permitted Transfers. This includes executing all documents required by Beehive Homes, 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 the agreement, the Home, and any other agreements between the franchisor and transferor.
This means that the process and required documentation for a Permitted Transfer are subject to change at Beehive Homes' discretion. A prospective franchisee should be aware that the steps and paperwork involved in transferring ownership or equity could be different at the time of the transfer than what was initially outlined in the franchise agreement. This is a fairly standard clause in franchise agreements, allowing the franchisor to adapt to changing legal and business environments.