When is the non-refundable transfer fee due for an 'Authorized Transfer' of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
onsent of Franchisor. Franchisor's consent shall be subject to, but not by way of limitation, the following conditions, all of which must be satisfied at or before the date of closing of the 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 of $15,000 to Beehive Homes. This fee is due when the franchisee submits the 'Authorized Transfer Request'. The transfer request must include the identity of the proposed transferee, the terms and conditions of the proposed transfer, and any other information reasonably requested by Beehive Homes.
This fee covers Beehive Homes' expenses for legal, accounting, credit, and investigation work related to the proposed transfer. It's important to note that this fee is nonrefundable, meaning the franchisee will not get it back even if the transfer does not go through. This is a standard practice in franchising, as the franchisor incurs costs regardless of whether the transfer is ultimately completed.
In addition to the transfer fee, the FDD states that Beehive Homes' consent to the transfer is subject to certain conditions that must be met at or before the date of closing of the Authorized Transfer. The franchisor will provide written consent or notification of withholding consent within 30 days after compliance with the specified conditions. A prospective franchisee should carefully consider these conditions and the nonrefundable nature of the transfer fee before initiating a transfer request.