What are the requirements for a Trust Transfer of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Trust Transfer. Franchisee or, if Franchisee is a corporation or other legal entity its Equity Owner(s), may Transfer an Equity Interest to a grantor trust (a defined in the Internal Revenue Code of 1986, as amended) provided the transferor or the transferor and the transferor's spouse are the sole trustees of the grantor trust and the transferor and transferor's Immediate Family Members are the sole beneficiaries of the grantor trust.
- (c) Transfer On Death. Upon the death of Franchisee or, if Franchisee is a corporation or other legal entity an Equity Owner, the Equity Interest of the deceased Franchisee or Equity Owner may be Transferred in accordance with such person's will or, if such person dies intestate, in accordance with laws of intestacy governing the distribution of such person's estate, provided that: (i) the transfer on death is to an Immediate Family Member(s) or to a legal entity formed and owned by such Immediate Family Member(s); (ii) within six (6) months after the date of death, such Immediate Family Member(s), or a legal entity formed and owned by such Immediate Family Member(s), meets all of Franchisor's then current requirements for new franchisees and approval by Franchisor, which approval may not be unreasonably withheld; and (iii) such Immediate Family Member(s) or a legal entity formed and owned by such Immediate Family Member(s) signs the Franchisor's then current form of Franchise Agreement, and if the legal entity formed and owned by the Immediate Family Member(s) signs the Franchise Agreement, the Immediate Family Member(s) shall sign the Franchisor's Guarantee and Assumption Agreement.
- 13.4. Authorized Transfers. An Authorized Transfer means any Transfer of an Equity Interest in compliance with this Section 13.4 and with the advance written consent of Franchisor. Franchisor's consent shall be subject to, but not by way of limitation, the following conditions, all of which must be satisfied at or before the date of closing of the Authorized Transfer.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee can transfer their equity interest to a grantor trust under specific conditions. The transferor must be the sole trustee, or the transferor and their spouse must be the trustees. Additionally, the transferor and their immediate family members must be the sole beneficiaries of the grantor trust. This allows for estate planning while keeping the franchise within the family's control.
Beehive Homes also stipulates that any transfer of equity interest must comply with Section 13.4 of the franchise agreement and requires advance written consent from Beehive Homes. This consent is subject to certain conditions that must be met before the transfer can be finalized. This requirement ensures that Beehive Homes maintains control over who operates their franchises and that the new operators meet their standards.
Furthermore, Beehive Homes mandates that all 'Permitted Transfers' must not result in a change of control of the franchise, equity interest, or the home itself. At least 30 days before the proposed transfer, the franchisee must provide a written notice to Beehive Homes, including the identity and contact information of all proposed transferees and any other information Beehive Homes may require. A non-refundable processing fee of $2,500.00 must also be paid with the transfer request. Compliance with Beehive Homes' current procedure for processing Permitted Transfers, including the execution of all required documents and the current form of the Franchise Agreement, is also necessary.