What provision must Beehive Homes make before conveying, assigning, or transferring its obligations to fulfill contractual obligations to the franchisee?

According to Beehive Homes' 2025 Franchise Disclosure Document, if the franchisee wishes to assign their rights, they must first obtain written consent from Beehive Homes. Specifically, without prior written consent from Beehive Homes, the assignor, assignee, and any shareholders, partners, or members cannot voluntarily or by operation of law transfer or assign the franchise or the Franchise Agreement. They also cannot pledge or encumber the franchise, or assign, transfer, or pledge any equity interest in the assignee, including transfers in any entity that is a shareholder, partner, or member.

Additionally, the creation of new or additional equity interests in the assignee is prohibited without Beehive Homes' consent. Any amendments to the organizational documents relating to the assignee also require prior written approval. These restrictions ensure that Beehive Homes maintains control over who operates a franchise and that the financial structure of the franchise remains stable and in compliance with their standards.

These provisions are typical in franchising, as franchisors want to carefully control who is operating under their brand name. By requiring consent for assignments and transfers, Beehive Homes can vet potential new operators and ensure they meet the company's standards. The restrictions on equity interests and organizational document amendments further protect Beehive Homes' interests by preventing unauthorized changes to the franchise's structure and ownership.