What is the third condition that must be met for a Beehive Homes franchisee to engage in Permitted Transfers?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Permitted Transfers. Franchisee, and if Franchisee is a corporation or other legal entity, its Equity Owner(s) (or any transferee Equity Owner approved by Franchisor), may engage in Permitted Transfers, as defined in this Section 13.3, only if: (i) all such Permitted Transfers do not in the aggregate result in a change of Control of the Franchisee, an Equity Interest or the Home; (ii) Franchisee or its Equity Owner(s) delivers to Franchisor, at least thirty (30) days prior to the proposed Permitted Transfer, a written notice (the "Permitted Transfer Request") which includes the identity and contact information for all proposed transferees and any other information Franchisor may require in order to review the proposed Permitted Transfer; (iii) Franchisee or its EquityOwner(s) pays to Franchisor a nonrefundable processing fee of Two Thousand Five Hundred Dollars ($2,500.00) with the Permitted Transfer Request; and (iv) Franchisee or its EquityOwner(s) complies with Franchisor's then current procedure for processing Permitted Transfers, including the execution of all documents required by Franchisor, including the then current form of Franchise Agreement in use by the Franchisor, for the assumption by proposed transferees of all duties and
obligations of the transferor relating to this Agreement, the Home and any other agreements between Fran
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee can engage in a 'Permitted Transfer' if certain conditions are met. A 'Permitted Transfer' does not result in a change of control of the franchise, equity interest, or the home. The third condition requires the franchisee or its Equity Owner(s) to pay Beehive Homes a nonrefundable processing fee of $2,500 along with the Permitted Transfer Request.
This fee is specifically for processing the transfer request and is non-refundable, regardless of whether the transfer is ultimately approved. This is in addition to providing written notice at least thirty days prior to the proposed transfer and complying with Beehive Homes' procedures for processing Permitted Transfers.
It is important for prospective franchisees to understand these conditions, as failing to meet them could result in the transfer being classified as an 'Unauthorized Transfer,' which carries significant financial penalties. Franchisees should carefully review the transfer requirements outlined in Section 13.3 of the Franchise Agreement and consult with Beehive Homes to ensure full compliance.