What happens to a Beehive Homes equity interest upon the death of a franchisee or equity owner?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death of Franchisee or, if Franchisee is a corporation or other legal entity an Equity Owner, the Equity Interest of the deceased Franchisee or Equity Owner may be Transferred in accordance with such person's will or, if such person dies intestate, in accordance with laws of intestacy governing the distribution of such person's estate, provided that: (i) the transfer on death is to an Immediate Family Member(s) or to a legal entity formed and owned by such Immediate Family Member(s); (ii) within six (6) months after the date of death, such Immediate Family Member(s), or a legal entity formed and owned by such Immediate Family Member(s), meets all of Franchisor's then current requirements for new franchisees and approval by Franchisor, which approval may not be unreasonably withheld; and (iii) such Immediate Family Member(s) or a legal entity formed and owned by such Immediate Family Member(s) signs the Franchisor's then current form of Franchise Agreement, and if the legal entity formed and owned by the Immediate Family Member(s) signs the Franchise Agreement, the Immediate Family Member(s) shall sign the Franchisor's Guarantee and Assumption Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the equity interest of a deceased franchisee or equity owner can be transferred according to their will or state intestacy laws. However, this transfer is contingent on several conditions.
First, the transfer must be to an immediate family member or a legal entity owned by immediate family members. Second, within six months of the death, the family member or their legal entity must meet all of Beehive Homes' current requirements for new franchisees and receive approval from Beehive Homes, which cannot be unreasonably withheld.
Finally, the immediate family member or their legal entity must sign Beehive Homes' current Franchise Agreement. If a legal entity signs the agreement, the immediate family member must also sign Beehive Homes' Guarantee and Assumption Agreement. These stipulations ensure that Beehive Homes maintains control over who becomes a franchisee and that the new franchisee meets their standards.