Do all terms and conditions of the Beehive Homes Franchise Agreement remain in effect after the assignment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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.
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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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the terms and conditions of the Franchise Agreement remain in full force and effect after an assignment, except as specifically modified by the assignment agreement itself. This means that both the assignor (the original franchisee) and the assignee (the new franchisee) are bound by the original Franchise Agreement, ensuring continuity and adherence to Beehive Homes' standards.
However, the assignor isn't released from their obligations. The assignor remains personally bound by and liable for any breaches of the Franchise Agreement, including monetary obligations and required actions or inactions. After the assignment date, any reference to "Franchisee" in the original agreement refers to both the assignor and the assignee, jointly and severally. This dual responsibility provides Beehive Homes with added security and recourse in case of non-compliance.
Furthermore, the FDD outlines specific restrictions on further transfers or assignments. Without prior written consent from Beehive Homes, the assignor, assignee, and any shareholders, partners, or members cannot make or permit any further transfer or assignment of the franchise, pledge or encumber the franchise, transfer equity interests in the assignee, create new equity interests, or amend organizational documents related to the assignee. These restrictions ensure that Beehive Homes maintains control over the franchise and the individuals or entities involved, safeguarding the brand and operational consistency.