What specific agreements, besides the Franchise Agreement, might require assumption by a transferee of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Transferee or its Equity Owner(s) shall meet all of Franchisor's then current requirements for new franchisees; shall submit to Franchisor all information reasonably requested by Franchisor to determine qualification as transferees; and shall execute Franchisor's then current form of new franchise agreement and all ancillary forms, including the Franchisor's Guarantee and Assumption Agreement by the transferee's EquityOwner(s), if any.
- 13.5. Unauthorized Transfer. If Franchisee engages in an Unauthorized Transfer as provided in Section 13.2 or Section 13.6, Franchisee hereby covenants and promises to pay to Franchisor, in addition to all other costs and expenses provided for in this Agreement, an additional transfer fee in an amount equal to ten (10) times [5% times [12 times [the greater of (i) the average published monthly rate per resident of the Home during the 12 months preceding the Unauthorized Transfer, times the number of beds in the Home, or (ii) the average published monthly rate per resident of the home which has been in operation for the preceding 18 month and is in nearest geographic proximity to the Home , times the number of beds in the Home]]]. The parties hereto agree that this additional transfer fee is not a penalty, but the parties' best estimate of the anticipated damage to Franchisor resulting from the Unauthorized Transfer.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, a transferee of a Beehive Homes franchise must execute Beehive Homes' then-current form of new franchise agreement and all ancillary forms. This includes the Franchisor's Guarantee and Assumption Agreement by the transferee's Equity Owner(s), if any. This indicates that in addition to the franchise agreement itself, a transferee may be required to sign a guarantee and assumption agreement.
Furthermore, the assignment documentation states that the assignor must notify all of its lien holders and lenders of the assignment. This implies that there may be loan agreements or other financial obligations that the transferee needs to be aware of, although the FDD does not explicitly state that the transferee must assume these agreements. The FDD also states that all obligations, agreements, representations, and warranties made by more than one party will be joint and several even if it is not so stated in the relevant paragraph.
In the event of a transfer, the franchisee or its equity owner proposing the transfer must remedy all defaults under the Franchise Agreement and all other agreements they may have with Beehive Homes or its affiliates. They must also pay all amounts due to Beehive Homes and its affiliates through the date of closing of the transfer. This suggests that there may be other agreements in place between the franchisee and Beehive Homes or its affiliates that the transferee should be aware of and potentially assume.