What is the significance of the 'Effective Date' in the Beehive Homes franchise assignment agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
IMITED LIABILITY COMPANY]
| | 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 | 4. Assignee must pay all fees and perform all obligations under the Franchise Agreement.
- Assignor agrees to remain personally bound by, and personally liable for the breach of, each and every provision of the Franchise Agreement, both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities, and is not released from any obligations to Bee Hive Homes by this Assignment. After the date of this Assignment, all references to Franchisee in the Franchise Agreement shall refer to both Assignor and Assignee both jointly and severally.
[Alternate paragraph to be used for Assignment to Corporation.]
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- Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Shareholders may not, either voluntarily or by operation of law, make or permit:
- a) any further transfer or assignment of the Franchise or the Franchise Agreement;
- b) any pledge or encumbrance of the Franchise;
- c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Shareholder;
- d) the creation of new or additional equity interests in Assignee; or
- e) any amendment of the terms of any organizational documents relating to Assignee.
Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Franchise including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.
[Alternate paragraph to be used for Assignment to Partnership.]
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the 'Effective Date' in the assignment agreement marks a crucial point in transferring franchise rights. Specifically, on this date, the assignor (the current franchisee) transfers all rights, title, and interest in the franchise to the assignee (the new franchisee), subject to the provisions outlined in the franchise agreement. This means the assignee officially takes over the franchise operations and responsibilities from the assignor as of the Effective Date.
Furthermore, the Effective Date triggers certain obligations for the assignee. For instance, the assignee is responsible for paying all fees and fulfilling all obligations under the original franchise agreement from this date forward. The franchisor, Beehive Homes, consents to the assignment as of the Effective Date, but this consent is contingent upon both the assignor and assignee adhering to the franchise agreement's provisions. This ensures that the new franchisee is legally bound to the terms and conditions initially agreed upon.
Additionally, the Effective Date has implications for the use of Beehive Homes' trademarks in the assignee's name. If the assignee's name includes any reference to "Bee Hive", "BeeHive", or any similar trademark, the assignor and assignee must change the name within 30 days after the Effective Date to remove such references. This protects Beehive Homes' brand identity and prevents potential trademark disputes. The assignor also remains bound by the original franchise agreement even after the assignment, meaning they can still be held liable for breaches, highlighting the importance of a smooth transition and continued compliance.
In summary, the Effective Date in the Beehive Homes franchise assignment agreement is the date on which the transfer of franchise rights becomes official, triggering several obligations and conditions for both the assignor and assignee. It is a critical reference point for determining when the new franchisee assumes responsibility for the franchise and when certain trademark-related actions must be completed.