What is the non-refundable transfer fee for an 'Authorized Transfer' of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Authorized Transfer. Franchisee or its Equity Owner(s) proposing the Transfer shall deliver to Franchisor a written notice (the "Authorized Transfer Request") which identifies, among other things the identity of the proposed transferee and the terms and conditions of the proposed transfer and shall provide all other information reasonably requested by the Franchisor. The Franchisor shall give its written consent or notification of withholding its consent to Franchisee and its Equity Owner(s) within thirty (30) days after compliance or other assurance satisfactoryto Franchisor of compliance with the following conditions:
- (a) Franchisee or its Equity Owner(s) proposing the Transfer shall pay to Franchisor, with the Authorized Transfer Request, a nonrefundable transfer fee in the amount of Fifteen Thousand Dollars ($15,000.00), to reimburse Franchisor for its reasonable legal, accounting, credit, and investigation expenses incurred in connection with
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee proposing an 'Authorized Transfer' must pay a nonrefundable transfer fee. This fee is $15,000.00 and is due with the 'Authorized Transfer Request'.
The purpose of this fee is to reimburse Beehive Homes for expenses they incur during the transfer process. Specifically, the fee covers the franchisor's reasonable legal, accounting, credit, and investigation expenses related to the proposed transfer.
It is important to note that this fee is nonrefundable, meaning that the franchisee will not receive the $15,000 back, even if the transfer is not completed or approved. This is a standard practice in franchising, as the franchisor incurs costs regardless of whether the transfer is finalized. Franchisees should factor this cost into their decision-making process when considering a transfer.