Does Beehive Homes have the right to request a copy of all outstanding certificates of stock of the Assignee?

According to Beehive Homes' 2025 Franchise Disclosure Document, in the context of an assignment to a corporation, Beehive Homes has the right to request a copy of all outstanding certificates of stock of the Assignee. This means that if a franchisee transfers their franchise to a corporation (the Assignee), Beehive Homes can demand to see documentation of the corporation's stock ownership.

This provision allows Beehive Homes to monitor and control who owns and controls its franchises, even after an assignment to a corporate entity. By reviewing the stock certificates, Beehive Homes can verify that the ownership structure of the Assignee aligns with its approved ownership policies and that no unauthorized transfers of control have occurred. This is a mechanism to ensure that the individuals ultimately responsible for the Beehive Homes franchise meet the franchisor's standards.

For a prospective franchisee, this means that if they plan to operate their Beehive Homes franchise through a corporation, they must be prepared to provide Beehive Homes with detailed information about the corporation's ownership. This includes submitting copies of all outstanding stock certificates upon request. Failure to comply with such requests could potentially lead to a breach of the franchise agreement and possible termination of the franchise. This requirement is in addition to the legend that must be placed on all issued and outstanding shares of stock of the Assignee, stating that the stock may not be pledged, sold, assigned, or otherwise transferred without the prior written consent of Bee Hive Homes, Inc.

It is important for franchisees to maintain accurate records of their corporate structure and be transparent with Beehive Homes regarding any changes in ownership. This provision underscores the franchisor's interest in maintaining control over its brand and ensuring that all franchisees, whether individuals or corporations, adhere to its standards and policies.