What is the role of Beehive Homes, Inc. in the Assignment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Assignment and Consent to Assignment of Franchise to a | ||
|---|---|---|
| [Corporation/Partnership/Limited Liability Company], dated, 2025 | ||
| ("Assignment"), is by and among | "Assignor"); [Corporation/Partnership/LLC Name], a [corporation/partnership/limited liability company] ("Assignee"); and those | BEE HIVE HOMES, INC., a Utah corporation ("Bee Hive Homes"); and (collectively, the |
| [shareholders/partners/members] | of Assignee (individually ["Shareholder"/"Partner"/"Member"] and collectively ["Shareholders"/"Partners"/"Members"]) listed on Exhibit A attached hereto and | |
| incorporated herein by reference. | Recitals | |
| (the "Franchise"). | A. Bee Hive Homes or its predecessor in interest issued to Assignor or its predecessor(s) in interest a Franchise Agreement dated (the "Franchise Agreement"), for the Bee Hive Homes Franchise located at | |
| Assignee. | B. Assignor requests Bee Hive Homes' consent to transfer the rights in the Franchise to | |
| Homes' consent to this Assignment is required under the terms of the Franchise Agreement. Agreement | C. Assignor, Assignee, and [Shareholders/Partners/Members] acknowledge that Bee Hive | |
| as follows: | The parties, intending to be legally bound and for good and valuable consideration, agree 1. The effective date of this Assignment is ("Effective Date"). | |
| Agreement and this Assignment. | 2. Bee Hive Homes consents to this Assignment subject to the provisions of the Franchise | |
| Assignor in the Franchise to Assignee, subject to the provisions of the Franchise Agreement. | 3. On the Effective Date, Assignor assigns and transfers all the right, title, and interest of |
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes, Inc., a Utah corporation, plays a central role in the assignment of a franchise agreement. The assignment involves the assignor (the current franchisee), the assignee (the party to whom the franchise is being transferred), Beehive Homes, and the shareholders/partners/members of the assignee. Beehive Homes' consent is required for the transfer of franchise rights from the assignor to the assignee, as stipulated in the original Franchise Agreement. This consent is a key condition for the assignment to proceed.
Beehive Homes' role extends to ensuring compliance with the Franchise Agreement and the Assignment terms. The company retains the right to examine and copy the records of the assignor, assignee, and their shareholders/partners/members to verify adherence to these agreements. Furthermore, Beehive Homes is entitled to legal remedies if any party breaches the conditions, representations, or warranties outlined in the Assignment. This oversight helps Beehive Homes maintain the integrity and standards of its franchise system.
However, the FDD also clarifies certain limitations of Beehive Homes' involvement in the assignment process. Beehive Homes does not provide tax or legal advice related to the assignment, and its approval of the assignment does not constitute such advice. Additionally, Beehive Homes does not review or evaluate the validity of the assignee's organizational documents or any trusts or entities with an equity interest in the assignee. If these documents conflict with the Assignment or Beehive Homes' ownership policies, the provisions of the Assignment will take precedence. This indicates that while Beehive Homes maintains control over the franchise transfer, the responsibility for legal and financial due diligence rests with the parties involved in the assignment.
Moreover, Beehive Homes maintains certain controls over future equity transfers. For assignments to corporations, the company requires a specific legend on all issued stock, restricting transfers without prior written consent from Beehive Homes. Similarly, for assignments to partnerships or limited liability companies, further transfers or assignments of the franchise, pledges, or encumbrances require Beehive Homes' prior written consent. These measures ensure that Beehive Homes retains oversight over changes in ownership and equity interests within its franchise network, safeguarding the brand and operational consistency.