What statement must a Beehive Homes franchisee include in all agreements and contracts?

According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee assigns their franchise to a corporation, the franchisee or assignee must include a specific legend on all issued and outstanding shares of stock of the assignee. The required statement is: "This stock may not be pledged, sold, assigned or otherwise transferred, in whole or in part, voluntarily or by operation of law, without the prior written consent of Bee Hive Homes, Inc. Any and all transfers are also subject to the terms of the Franchise, including the".

This requirement ensures that Beehive Homes maintains control over who becomes involved in the franchise, even indirectly through ownership of the corporate entity. This is a common practice in franchising to protect the brand and ensure that all operators meet the franchisor's standards. By requiring this legend, Beehive Homes aims to prevent unauthorized transfers of ownership that could compromise the quality and consistency of the franchise.

For a prospective Beehive Homes franchisee, this means that if they plan to operate their franchise through a corporation, they must adhere to this stock restriction. This could affect the franchisee's ability to raise capital or transfer ownership in the future, as any such actions would require Beehive Homes' prior written consent. Franchisees should carefully consider this restriction and discuss it with their legal and financial advisors before making a final decision.