Who is responsible for paying the transfer fee to Beehive Homes in the event of an approved franchise transfer?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) Transfer Fee. YOU may not transfer YOUR franchise without OUR prior written consent. If WE consent to a transfer of the franchise by YOU, a fee of $2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers must be paid, by either YOU or the approved transferee to reimburse US for OUR reasonable legal, accounting, credit or other investigation expenses. This transfer fee is nonrefundable and is payable at the time of the approved transfer. If WE arrange the transferee for YOU, YOU must pay US a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For certain Unauthorized Transfers, YOU will pay US a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
NOTE: These fees are uniformly imposed on all franchisees.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the transfer fee for an approved franchise transfer can be paid by either the franchisee or the approved transferee. The standard transfer fee is $2,500 for certain permitted transfers or $15,000 for other approved transfers. This fee is to reimburse Beehive Homes for expenses related to the transfer, such as legal, accounting, and credit investigation costs. The transfer fee is nonrefundable and must be paid at the time of the approved transfer.
In the event that Beehive Homes arranges the transferee, the franchisee must pay Beehive Homes a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For unauthorized transfers, the franchisee will pay Beehive Homes a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
The FDD outlines these fees in Item 6, which details various other fees associated with the Beehive Homes franchise. These fees are uniformly imposed on all franchisees. Understanding these costs is crucial for prospective franchisees to accurately assess the financial implications of transferring their franchise.