When is the transfer fee payable to Beehive Homes for an approved franchise transfer?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount of Fee | When Due | To Whom Paid |
|---|---|---|---|
| Transfer Fee (6) | $2,500 or $15,000 | pay at transfer | US |
| Additional Transfer | 10 times calculated annual | pay at transfer | US |
| Fee (6) | Franchise Royalties | ||
| Transfer | 6% of total price | pay at transfer | US |
| Commission (6) |
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a transfer fee is payable at the time of the approved transfer. The amount of the transfer fee varies. For certain permitted transfers, the fee is $2,500.00, while for certain approved transfers, it is $15,000.00. If Beehive Homes arranges the transferee, a nonrefundable commission equal to six percent (6%) of the gross transfer price is also due, in addition to the transfer fee. For unauthorized transfers, the transfer fee is significantly higher, calculated as 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer. These fees are paid to Beehive Homes.
This means that a franchisee looking to sell their Beehive Homes franchise must be prepared to pay a transfer fee at the time the transfer is approved. The specific amount will depend on the nature of the transfer (permitted vs. approved) and whether Beehive Homes was involved in finding the buyer. It is important to note that these fees are nonrefundable, so even if the transfer does not ultimately go through after approval, the fee will not be returned.
Franchise agreements typically include transfer fees to compensate the franchisor for their time and expenses in reviewing and approving a transfer. This covers legal, accounting, and other administrative costs associated with ensuring the new franchisee meets the brand's standards. The fees also serve to protect the integrity of the Beehive Homes system by ensuring that only qualified and suitable individuals become franchisees.
Prospective franchisees should carefully consider these transfer fees and conditions, as they can significantly impact the profitability of selling their franchise in the future. Understanding the circumstances under which different transfer fees apply is crucial for financial planning and decision-making throughout the franchise term.