For how long after the termination or expiration of the Beehive Homes Franchise Agreement is the franchisee restricted from transferring equity interest?

According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee is restricted from transferring any equity interest during the term of the Franchise Agreement and for a period of three years after the termination or expiration of the agreement. This restriction applies to the franchisee and, if the franchisee is a corporation or other legal entity, to its Equity Owners.

This restriction means that a franchisee cannot sell, assign, or otherwise transfer ownership in the Beehive Homes business during the franchise term or for three years after the franchise ends. This provision is in place to protect Beehive Homes' interests by ensuring that franchisees and their owners remain committed to the business and brand standards, and to prevent competitors from gaining control of a Beehive Homes location shortly after the franchise agreement concludes.

There are some exceptions to this restriction, such as permitted transfers to immediate family members or transfers upon death, provided certain conditions are met, including the transferee meeting Beehive Homes' requirements for new franchisees and signing the current form of the Franchise Agreement. Any transfer that violates these restrictions is considered an unauthorized transfer.

Prospective franchisees should carefully consider this restriction on equity transfers, as it could impact their ability to exit the business or make changes to the ownership structure. It is important to understand the conditions under which transfers are permitted and to factor this into long-term business and estate planning.