What specific provisions of the Franchise Agreement must the Assignee and Shareholders/Partners/Members adhere to regarding the Beehive Homes System?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ertificates of stock of Assignee.
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- No [Shareholders/Partners/Members] are granted approved owner/operator status by this Assignment. However, Assignee and [Shareholders/Partners/Members] must abide by those provisions of the Franchise Agreement relating to the maintenance and protection of the Bee Hive Homes System (as defined in the Franchise Agreement) including, but not limited to, those provisions requiring confidentiality and regulating involvement in other or similar residential care or assisted living businesses. A breach of this covenant is a material breach of the Franchise Agreement and entitles Bee Hive Homes to enforce all remedies available including, but not limited to, the termination of the Franchise.
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- The parties' respective successors, assigns, heirs, and personal representatives are bound by this Assignment. 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.
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- At anytime during normal business hours, Bee Hive Homes may examine and copy any of Assignor's, Assignee's, or any [Shareholder's/Partner's/Member's] records, books, financial records, tax returns, or other documents for the purpose of insuring compliance with the Franchise Agreement and this Assignment.
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- If Assignor, Assignee, or any [Shareholder/Partner/Member] breaches any of the conditions, representations, agreements, or warranties contained in this Assignment, Bee Hive Homes will be entitled to all relief and remedies available by law, and to all relief and remedies granted to Bee Hive Homes by the Franchise.
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- Assignor has notified all of Assignor's lien holders and lenders of this Assignment.
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- All terms and conditions of the Franchise Agreement remain in full force and effect except as modified by this Assignment including, but not limited to, the terms and conditions of Paragraph 13.3(c) of the Franchise Agreement in the event of the death of Assignor.
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- If Assignee's name or the name of any trust or entity with an equity interest in Assignee (collectively "Assignee's Name") contains any reference to "Bee Hive", "BeeHive", or any derivative thereof, or any other Bee Hive Homes trademark, then Assignor, Assignee, and [Shareholders/Partners/Members] covenant and agree (i) that they will cause Assignee's Name to be changed, within 30 days after the Effective Date, to delete any such reference without further consideration from Bee Hive Homes; (ii) that they will not challenge Bee Hive Homes use of any trade name, trademark, or internet domain name on the grounds that it: (a) is similar to Assignee's Name; (b) is likely to cause confusion; or (c) dilutes the value of the trade name; and (iii) that Assignee's Name shall not be used in connection with any trade or business conducted by Assignor, Assignee, or [Shareholders/Partners/Members] except the Bee Hive Homes Franchise business.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, in the event of an assignment of a franchise, the Assignee and any Shareholders/Partners/Members must adhere to specific provisions of the Franchise Agreement relating to the maintenance and protection of the Beehive Homes System. This includes, but is not limited to, provisions requiring confidentiality and regulating involvement in other or similar residential care or assisted living businesses. A breach of this covenant is considered a material breach of the Franchise Agreement, which entitles Beehive Homes to enforce all available remedies, including termination of the franchise.
Additionally, without prior written consent from Beehive Homes, the Assignor, Assignee, and Shareholders/Partners/Members cannot make or permit any further transfer or assignment of the franchise or the Franchise Agreement. They also cannot pledge or encumber the franchise, or assign, transfer, or pledge any equity interest in the Assignee, including transfers in any entity that is a Shareholder, Partner, or Member. The creation of new or additional equity interests in the Assignee is also prohibited without consent, as is any amendment of the terms of organizational documents relating to the Assignee.
Furthermore, if the Assignee's name contains any reference to "Bee Hive", "BeeHive", or any derivative thereof, or any other Beehive Homes trademark, the Assignor, Assignee, and Shareholders/Partners/Members must change the Assignee's name within 30 days after the effective date to remove any such reference. They also agree not to challenge Beehive Homes' use of any trade name, trademark, or internet domain name on the grounds that it is similar to the Assignee's name, is likely to cause confusion, or dilutes the value of the trade name. The Assignee's name cannot be used in connection with any trade or business except the Beehive Homes Franchise business.