Regarding assignment to a partnership for a Beehive Homes franchise, is changing a limited partnership interest to a general partnership interest (or vice versa) allowed without Beehive Homes' prior written consent?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Partners may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Partner;
- d) the creation of new or additional equity interests in Assignee;
- e) the change of a limited partnership interest to a general partnership interest or of a general partnership interest to a limited partnership interest; or
- f) any amendment of the terms of any partnership agreement or other organizational documents relating to Assignee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if a Beehive Homes franchise is assigned to a partnership, changing a limited partnership interest to a general partnership interest, or vice versa, is not allowed without the prior written consent of Beehive Homes. This requirement is in place to ensure that Beehive Homes maintains control over the ownership and management structure of its franchises, even after an assignment.
This stipulation is part of a broader set of restrictions related to the transfer of equity interests in the assignee entity. These restrictions also include any further transfer or assignment of the franchise, any pledge or encumbrance of the franchise, any assignment, transfer, or pledge of any equity interest in the assignee, the creation of new or additional equity interests in the assignee, and any amendment of the terms of any partnership agreement or other organizational documents relating to the assignee.
For a prospective Beehive Homes franchisee, this means that if the franchise is operated under a partnership structure, any changes to the type of partnership interest (limited or general) require explicit approval from Beehive Homes. This is a significant restriction that could impact the flexibility of the partnership and its ability to adapt to changing circumstances. Franchisees should carefully consider this requirement and discuss it with Beehive Homes to understand the potential implications and any possible exceptions or conditions.