If Beehive Homes requests copies of stock certificates, who is responsible for providing them?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) If Bee Hive Homes requests, Assignor or Assignee must send to Bee Hive Homes a copy of all outstanding certificates of stock of Assignee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, in the event of an assignment to a corporation, either the assignor or the assignee is responsible for providing copies of all outstanding stock certificates to Beehive Homes if requested. This requirement ensures that Beehive Homes maintains oversight and control over the ownership and transfer of equity within the franchise system, even when the franchise is operated through a corporate entity.
This provision is important for prospective franchisees because it highlights the ongoing obligations related to corporate structure and ownership. If a franchisee chooses to operate their Beehive Homes franchise through a corporation, they must be prepared to provide these documents upon request. Failure to comply with this request could potentially lead to issues with the franchisor and may impact the franchisee's ability to operate their business smoothly.
This requirement is not uncommon in franchising, as franchisors often seek to maintain control over the ownership and management of their franchise locations to protect their brand and ensure compliance with franchise agreements. Franchisees should maintain organized records of their stock certificates and be prepared to provide them promptly if requested by Beehive Homes.