Is franchisor consent required for an 'Authorized Transfer' of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Authorized Transfers. An Authorized Transfer means any Transfer of an Equity Interest in compliance with this Section 13.4 and with the advance written consent of Franchisor. Franchisor's consent shall be subject to, but not by way of limitation, the following conditions, all of which must be satisfied at or before the date of closing of the Authorized Transfer. Franchisee or its Equity Owner(s) proposing the Transfer shall deliver to Franchisor a written notice (the "Authorized Transfer Request") which identifies, among other things the identity of the proposed transferee and the terms and conditions of the proposed transfer and shall provide all other information reasonably requested by the Franchisor. The Franchisor shall give its written consent or notification of withholding its consent to Franchisee and its Equity Owner(s) within thirty (30) days after compliance or other assurance satisfactoryto Franchisor of compliance with the following conditions:
(a) Franchisee or its Equity Owner(s) proposing the Transfer shall pay to Franchisor, with the Authorized Transfer Request, a nonrefundable transfer fee in the amount of Fifteen Thousand Dollars ($15,000.00), to reimburse Franchisor for its reasonable legal, accounting, credit, and investigation expenses incurred in connection with the proposed transfer;
(b) Franchisee or its Equity Owner(s) proposing the Transfer shall pay to Franchisor at the date of closing of the Transfer a commission equal to six percent (6%) of the gross transfer price if Franchisor or its Affiliate finds or introduces the proposed transferee to Franchisee or its Equity Owner(s);
(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
(d) Transferee or its Equity Owner(s) shall meet all of Franchisor's then current requirements for new franchisees; shall submit to Franchisor all information reasonably requested by Franchisor to determine qualification as transferees; and shall execute Franchisor's then current form of new franchise agreement and all ancillary forms, including the Franchisor's Guarantee and Assumption Agreement by the transferee's E
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, an 'Authorized Transfer' requires the franchisor's advance written consent. An Authorized Transfer is defined as any transfer of equity interest that complies with Section 13.4 of the franchise agreement.
Beehive Homes' consent is subject to specific conditions that must be met before the transfer can be finalized. The franchisee must provide a written notice to Beehive Homes that includes the identity of the proposed transferee, the terms of the proposed transfer, and any other information reasonably requested by Beehive Homes.
Beehive Homes will then provide written consent or a notification of withholding consent within 30 days of the franchisee meeting all the conditions. These conditions include paying a nonrefundable transfer fee of $15,000 to cover legal, accounting, credit, and investigation expenses. If Beehive Homes finds the transferee, the franchisee must pay a commission equal to 6% of the gross transfer price at closing. The franchisee must also resolve any defaults, pay all outstanding amounts, provide security for any pending legal issues, and execute Beehive Homes' current voluntary termination agreement. Finally, the transferee must meet all of Beehive Homes' current requirements for new franchisees and execute the current form of the new franchise agreement and any related ancillary forms.