If Beehive Homes arranges the transferee for a franchise, what commission is paid to Beehive Homes?

According to Beehive Homes' 2025 Franchise Disclosure Document, if Beehive Homes arranges the transferee for a franchise, the franchisee must pay Beehive Homes a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to a transfer fee. The transfer fee is $2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers.

This means that if a franchisee decides to sell their Beehive Homes franchise and Beehive Homes finds the buyer, Beehive Homes will receive 6% of the total selling price as a commission. This is in addition to the standard transfer fee that covers Beehive Homes' costs for legal, accounting, and other investigation expenses related to the transfer. The commission is nonrefundable, meaning that even if the transfer falls through after Beehive Homes has arranged the transferee, the franchisee will still owe Beehive Homes the commission.

This commission structure incentivizes Beehive Homes to assist in finding suitable transferees, as they directly benefit from successful franchise sales. However, it also adds a significant cost to the franchisee selling their business, as they must factor in this commission when determining the sale price and potential profit from the transfer. Franchisees should consider this cost when evaluating the potential resale value of their Beehive Homes franchise.