How long does a Beehive Homes franchisee have to transfer the franchise after death or disability?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | FRANCHISE AGREEMENT SECTION | SUMMARY |
|---|---|---|
| a. Length of the franchise | Section 5.1 | ten years |
| term | ||
| b. Renewal or extension of | Section 5.2 | additional ten year renewal periods if you |
| the term | are in good standing | |
| c. Requirements for franchisees to renew or extend | Section 5 | three to nine month advance notice, approval by US, and signing by YOU of the current form of franchise agreement, which may have materially different terms and conditions from your initial franchise agreement |
| d. Termination by YOU | Not Applicable | Not Applicable |
| e. Termination by US without | Not Applicable | Not Applicable |
| cause | ||
| f. Termination by US with cause | Section 14 | WE can terminate if YOU commit certain events of default or other breaches of the Franchise Agreement |
| g. "Cause" defined - curable defaults | Section 14.1 | YOU have 30 days to cure: nonpayment of fees, nonperformance of franchise agreement where performance can be completed |
| h. “Cause” defined - non- curable defaults | Section 14.1 | non-curable defaults: bankruptcy (may not be enforceable under federal bankruptcy law), unauthorized transfers, abandonment, trademark misuse |
| i. YOUR obligations on termination/nonrenewal | Section 14.4; 14.5; 14.6 & 14.7 | pay amounts due; sell Home to Franchisor |
| j. Assignment of contract by | Section 13.1 | Assignee reasonably willing and able to |
| US | perform | |
| k. "Transfer" by YOU - | Section 2.20; | includes transfer of contract or assets and |
| defined | 13.2 | change in ownership |
| l. OUR approval of transfer | Section 13.4 | prior written approval but not |
| by YOU | unreasonably withheld | |
| m. Conditions for OUR | Section 13.4 | payment of fees, new franchise |
| approval of transfer | agreement, training | |
| n. OUR right of first refusal | Section 13.6 | WE can match any offer |
| to acquire YOUR business | ||
| o. OUR option to purchase YOUR business | Section 14.5 | WE can purchase YOUR business for the initial cost of the real property and the book value of the personal property upon an Event of Default |
| p. YOUR death or disability | Section 13.3 | transfer must generally be approved within 6 months. Please refer to the state cover page, if any, accompanying this Franchise Disclosure Document for any special provisions applicable to YOUR state |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 25–27)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, in the event of a franchisee's death or disability, there is a requirement to transfer the franchise within a specific timeframe. Generally, the transfer of the Beehive Homes franchise must be approved within 6 months. However, the FDD also indicates that there may be special provisions applicable to a franchisee's state, which are detailed on the state cover page of the Franchise Disclosure Document.
This 6-month window provides a defined period for the franchisee's estate or legal representative to manage the transfer process. This includes finding a suitable buyer, obtaining franchisor approval, and completing the necessary legal and financial arrangements. The inclusion of state-specific provisions highlights the importance of reviewing these disclosures carefully, as the timeframe or conditions for transfer could vary depending on the franchisee's location.
Prospective Beehive Homes franchisees should be aware of this requirement and consider it as part of their estate planning. It is crucial to understand the specific transfer requirements in their state to ensure a smooth transition in the event of death or disability. Franchisees should consult with legal and financial advisors to develop a plan that complies with both the franchise agreement and any applicable state laws.
The need for transfer approval underscores Beehive Homes's interest in maintaining brand standards and ensuring that any new franchisee is qualified to operate the business. This process protects the integrity of the franchise system and the interests of other franchisees. Franchisees should familiarize themselves with the criteria Beehive Homes uses to evaluate potential transferees to facilitate a timely and successful transfer.