What is the second condition that must be met for a Beehive Homes franchisee to engage in Permitted Transfers?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Permitted Transfers. Franchisee, and if Franchisee is a corporation or other legal entity, its Equity Owner(s) (or any transferee Equity Owner approved by Franchisor), may engage in Permitted Transfers, as defined in this Section 13.3, only if: (i) all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home; (ii) Franchisee or its Equity Owner(s) delivers to Franchisor, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request") which includes the identity and contact information for all proposed transferees and any other information Franchisor may require in order to review the proposed Permitted Transfer; (iii) Franchisee or its EquityOwner(s) pays to Franchisor a nonrefundable processing fee of Two Thousand Five Hundred Dollars ($2,500.00) with the Permitted Transfer Request; and (iv) Franchisee or its EquityOwner(s) complies with Franchisor's then current procedure for processing Permitted Transfers, including the execution of all documents required by Franchisor, including the then current form of Franchise Agreement in use by the Franchisor, for the assumption by proposed transfe
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee can engage in a Permitted Transfer only if certain conditions are met. A "Permitted Transfer" refers to a transfer of equity that does not result in a change of control of the franchise, equity interest, or the Beehive Homes location itself.
The second condition that must be met is that the franchisee or its Equity Owner(s) must deliver to Beehive Homes, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request"). This notice must include the identity and contact information for all proposed transferees and any other information Beehive Homes may require to review the proposed Permitted Transfer.
In practical terms, this means a Beehive Homes franchisee needs to provide ample notice and detailed information to the franchisor before proceeding with even a "Permitted Transfer". This allows Beehive Homes to assess the potential impact of the transfer and ensure that the new parties meet their standards. The 30-day notice period gives Beehive Homes time to conduct its review and request any additional information it deems necessary. This requirement is in place to protect the integrity of the Beehive Homes brand and ensure that any transfer aligns with the franchisor's overall business strategy.