Does Beehive Homes have a right of first refusal to purchase a franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the foregoing, Franchisee or its Equity Owner(s) proposing the Unauthorized Transfer shall pay to Franchisor at the date of closing of the Transfer a commission equal to six percent (6%) of the gross transfer price if Franchisor or its Affiliate finds or introduces the proposed transferee to Franchisee or its Equity Owner(s)
13.6. Right of First Refusal. Franchisee hereby gives and grants to Franchisor and its designees an unrestricted right of first refusal with respect to any proposed Transfer, excluding Permitted Transfers, by Franchisee and/or its Equity Owner(s) (the "Transferor") of any Equity Interest. Transferor shall deliver written notice of the proposed Transfer to Franchisor, together with an executed copy of the valid, enforceable purchase agreement for the Transfer. Franchisor shall have until the sixtieth (60 th) day after receipt of the written notice of the proposed Transfer and the purchase agreement from the Transferor in which to elect to exercise this right of first refusal by delivery of a written notice of election to Transferor. If Franchisor elects to exercise its right of first refusal it shall do so in accordance with the terms and conditions of the purchase agreement; provided, however, that Franchisor shall have a minimum of thirty (30) days after the delivery of
the notice of election in which to make any payments which might sooner be required under the purchase agreement. If Franchisor does not elect to exercise its right of first refusal, the Transferor may proceed with the proposed Transfer to the proposed transferee named in and in accordance with the terms and conditions of the purchase agreement and subject to Section 13.2 of this Agreement. However, if the proposed Transfer is not completed in accordance with the terms and conditions of the purchase agreement, the requirements of this Section shall again apply to the proposed Transfer and must again be complied with. The parties hereto acknowledge and agree that any exercise of this right of first refusal shall be subordinate to and subject to any lien of the Small Business Administration. AnyTransfer byFranchisee and/or its EquityOwner(s) which does not complywith the terms and conditions of this Section 13.6 will be deemed an Unauthorized Transfer.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes does have a right of first refusal regarding any proposed transfer of equity interest in a franchise. This excludes permitted transfers.
Specifically, if a franchisee or their equity owner intends to transfer any equity interest, they must provide written notice to Beehive Homes. This notice must include an executed copy of the purchase agreement. Beehive Homes then has 60 days from receiving this notice to decide whether to exercise its right of first refusal.
If Beehive Homes chooses to exercise this right, it must do so according to the terms of the purchase agreement. However, Beehive Homes is granted a minimum of 30 days after delivering the notice of election to make any payments that might be required sooner under the purchase agreement. If Beehive Homes does not exercise its right of first refusal, the franchisee can proceed with the transfer to the proposed transferee, as long as it complies with other relevant sections of the agreement. Any transfer that doesn't comply with these terms will be considered an unauthorized transfer. The exercise of the right of first refusal is subject to any lien of the Small Business Administration.