What is the nonrefundable processing fee for a Permitted Transfer Request for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Permitted Transfers. Franchisee, and if Franchisee is a corporation or other legal entity, its Equity Owner(s) (or any transferee Equity Owner approved by Franchisor), may engage in Permitted Transfers, as defined in this Section 13.3, only if: (i) all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home; (ii) Franchisee or its Equity Owner(s) delivers to Franchisor, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request") which includes the identity and contact information for all proposed transferees and any other information Franchisor may require in order to review the proposed Permitted Transfer; (iii) Franchisee or its EquityOwner(s) pays to Franchisor a nonrefundable processing fee of Two Thousand Five Hundred Dollars ($2,500.00) with the Permitted Transfer Request; and (iv) Franchisee or its EquityOwner(s) complies with Franchisor's then current procedure for processing Permitted Transfers, including the execution of all documents required by Franchisor, including the then current form of Franchise Agreement in use by the Franchisor, for the assumption by proposed transfe
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee or equity owner proposing a Permitted Transfer must pay a nonrefundable processing fee of $2,500.00 to Beehive Homes when submitting the Permitted Transfer Request. This fee is required to initiate the transfer process.
This fee covers the costs Beehive Homes incurs while processing the transfer request. It is important to note that this fee is nonrefundable, regardless of whether the transfer is ultimately approved or not. The franchisee should factor this cost into their decision-making process when considering a transfer.
In addition to this processing fee, the FDD also mentions a nonrefundable transfer fee of $15,000 associated with an "Authorized Transfer Request." This fee is intended to reimburse Beehive Homes for legal, accounting, credit, and investigation expenses. It is important for a prospective franchisee to understand the distinction between a "Permitted Transfer" and an "Authorized Transfer" and the different fees associated with each.
Prospective franchisees should carefully review the conditions and requirements for both Permitted and Authorized Transfers in the Franchise Agreement to fully understand the costs and obligations involved in transferring their Beehive Homes franchise.