What is the purpose of the Permitted Transfer Request for a Beehive Homes franchise?
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Permitted Transfer Request serves as a formal notification to Beehive Homes from the franchisee or their Equity Owner(s) when they intend to engage in certain types of ownership transfers. This request must be submitted at least thirty days before the proposed transfer. The purpose is to allow Beehive Homes to review and approve the proposed transfer, ensuring it meets specific conditions and doesn't result in a change of control of the franchise.
The Permitted Transfer Request must include the identity and contact information of all proposed transferees, along with any other information Beehive Homes requires to assess the transfer. A non-refundable processing fee of $2,500.00 must be paid with the request. This fee covers Beehive Homes' costs for reviewing the proposed transfer and ensuring compliance with their procedures.
Beehive Homes also requires compliance with their current procedures for processing Permitted Transfers, including the execution of all necessary documents. These documents may include the current form of the Franchise Agreement, ensuring that the proposed transferees assume all duties and obligations of the transferor related to the agreement, the Beehive Homes location, and any other agreements between Beehive Homes and the transferor. This process ensures that the new owners are fully committed to upholding the standards and obligations of the franchise system.
Permitted Transfers include Affiliate Transfers (transferring equity interest to an immediate family member or another equity owner) and Trust Transfers. These transfers are allowed as long as they do not relieve the transferring equity owner of their obligations under the Franchise Agreement or Equity Owner's Guarantee and Assumption of Obligations. The Permitted Transfer Request process allows Beehive Homes to maintain control over who operates their franchises and ensures the continued success and integrity of the Beehive Homes brand.