What provisions of the Franchise Agreement must the Assignee and Shareholders/Partners/Members abide by in the Beehive Homes assignment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ertificates of stock of Assignee.
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- No [Shareholders/Partners/Members] are granted approved owner/operator status by this Assignment. However, Assignee and [Shareholders/Partners/Members] must abide by those provisions of the Franchise Agreement relating to the maintenance and protection of the Bee Hive Homes System (as defined in the Franchise Agreement) including, but not limited to, those provisions requiring confidentiality and regulating involvement in other or similar residential care or assisted living businesses. A breach of this covenant is a material breach of the Franchise Agreement and entitles Bee Hive Homes to enforce all remedies available including, but not limited to, the termination of the Franchise.
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- The parties' respective successors, assigns, heirs, and personal representatives are bound by this Assignment. All obligations, agreements, representations, and warranties made by more than one party will be joint and several even if it is not so stated in the relevant paragraph.
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- At anytime during normal business hours, Bee Hive Homes may examine and copy any of Assignor's, Assignee's, or any [Shareholder's/Partner's/Member's] records, books, financial records, tax returns, or other documents for the purpose of insuring compliance with the Franchise Agreement and this Assignment.
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- If Assignor, Assignee, or any [Shareholder/Partner/Member] breaches any of the conditions, representations, agreements, or warranties contained in this Assignment, Bee Hive Homes will be entitled to all relief and remedies available by law, and to all relief and remedies granted to Bee Hive Homes by the Franchise.
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- Assignor has notified all of Assignor's lien holders and lenders of this Assignment.
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- All terms and conditions of the Franchise Agreement remain in full force and effect except as modified by this Assignment including, but not limited to, the terms and conditions of Paragraph 13.3(c) of the Franchise Agreement in the event of the death of Assignor.
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- If Assignee's name or the name of any trust or entity with an equity interest in Assignee (collectively "Assignee's Name") contains any reference to "Bee Hive", "BeeHive", or any derivative thereof, or any other Bee Hive Homes trademark, then Assignor, Assignee, and [Shareholders/Partners/Members] covenant and agree (i) that they will cause Assignee's Name to be changed, within 30 days after the Effective Date, to delete any such reference without further consideration from Bee Hive Homes; (ii) that they will not challenge Bee Hive Homes use of any trade name, trademark, or internet domain name on the grounds that it: (a) is similar to Assignee's Name; (b) is likely to cause confusion; or (c) dilutes the value of the trade name; and (iii) that Assignee's Name shall not be used in connection with any trade or business conducted by Assignor, Assignee, or [Shareholders/Partners/Members] except the Bee Hive Homes Franchise business.
The parties have signed this Assignment evidencing that they have read, understand, and are bound by the terms of this Assignment.
| | Bee Hive Homes, Inc.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, both the Assignee and any Shareholders/Partners/Members must adhere to specific provisions of the Franchise Agreement to maintain compliance. The Assignee is obligated to fulfill all duties and financial responsibilities outlined in the original Franchise Agreement. The Assignor remains personally liable for any breaches of the Franchise Agreement, meaning that references to 'Franchisee' in the original agreement now apply jointly and severally to both the Assignor and Assignee. This ensures that both parties are accountable for upholding the terms of the franchise.
Without prior written consent from Beehive Homes, the Assignor, Assignee, and Shareholders/Partners/Members are restricted from transferring or assigning the franchise, pledging or encumbering the franchise, assigning or transferring any equity interest in the Assignee, creating new equity interests in the Assignee, or amending any organizational documents related to the Assignee. These restrictions are in place to maintain control over the franchise's ownership and operational structure. Equity interests are broadly defined to include any direct or indirect interests in the Assignee, including interests stated as debt with risk-taking components or interests in the profits or appreciation of the home.
Furthermore, the Assignee and any Shareholders/Partners/Members must comply with the provisions of the Franchise Agreement that relate to protecting the Beehive Homes system. This includes maintaining confidentiality and refraining from involvement in similar residential care or assisted living businesses. A breach of these covenants constitutes a material breach of the Franchise Agreement, potentially leading to termination of the franchise. Beehive Homes retains the right to examine and copy records, books, financial documents, and tax returns of the Assignor, Assignee, and any Shareholders/Partners/Members to ensure compliance with the Franchise Agreement and the Assignment. If any party breaches the conditions of the Assignment, Beehive Homes is entitled to all legal remedies and those granted by the Franchise Agreement.