Must a proposed transferee of a Beehive Homes franchise assume all duties and obligations of the transferor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
est 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 Fran
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a proposed transferee must assume all duties and obligations of the transferor relating to the Franchise Agreement, the Home, and any other agreements between Beehive Homes and the transferor. This requirement is part of the procedure for Permitted Transfers.
This means that if a franchisee sells their Beehive Homes franchise, the buyer (transferee) must agree to take on all the responsibilities and liabilities of the seller (transferor) as outlined in the original Franchise Agreement. This includes financial obligations, operational duties, and any other commitments the original franchisee made to Beehive Homes. The transferee essentially steps into the shoes of the transferor, ensuring continuity and adherence to the franchise terms.
This requirement protects Beehive Homes by ensuring that any new franchisee is fully accountable for upholding the standards and obligations of the franchise system. It also provides clarity for the transferee, as they know exactly what is expected of them from the outset. However, it's crucial for potential transferees to carefully review the existing Franchise Agreement and any related documents to fully understand the scope of their assumed duties and obligations before completing the transfer.