Must all Permitted Transfers for a Beehive Homes franchise, in the aggregate, not result in a change of Control of the Franchisee?
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 transferees of all duties and
obligations of the transferor relating to this Agreement, the Home and any other agreements between Franchisor and transferor. Permitted Transfer shall mean:
- (a) Affiliate Transfer. Franchisee or, if Franchisee is a corporation or other legal entity its Equity Owner(s), mayTransfer an Equity Interest to an Immediate Family Member of Franchisee, or to another Equity Owner or to an Immediate Family Member of another Equity Owner, provided that such transfer does not relieve the transferring Equity Owner of any obligations under this Agreement or Equity Owner's Guarantee and Assumption of Obligations of this Agreement.
- (b) Trust Transfer.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Permitted Transfers, in the aggregate, must not result in a change of control of the franchisee, an equity interest, or the home.
Before engaging in a Permitted Transfer, the franchisee must provide Beehive Homes with a written notice at least 30 days in advance. This notice, called a "Permitted Transfer Request," must include the identity and contact information of all proposed transferees and any other information Beehive Homes requires to review the proposed transfer. Additionally, the franchisee must pay a nonrefundable processing fee of $2,500 with the Permitted Transfer Request and comply with Beehive Homes' current procedure for processing Permitted Transfers, including executing all required documents, such as the current form of Franchise Agreement.
Permitted Transfers include Affiliate Transfers, where a franchisee or their Equity Owner(s) may transfer an Equity Interest to an Immediate Family Member of Franchisee, or to another Equity Owner or to an Immediate Family Member of another Equity Owner, provided that such transfer does not relieve the transferring Equity Owner of any obligations under this Agreement or Equity Owner's Guarantee and Assumption of Obligations of this Agreement. Also, Permitted Transfers include Trust Transfers. Any Transfer in violation of this Section shall be an Unauthorized Transfer.