What is the transfer fee for an Unauthorized Transfer of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
If WE consent to a transfer of the franchise by YOU, a fee of $2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers must be paid, by either YOU or the approved transferee to reimburse US for OUR reasonable legal, accounting, credit or other investigation expenses. This transfer fee is nonrefundable and is payable at the time of the approved transfer. If WE arrange the transferee for YOU, YOU must pay US a nonrefundable commission equal to six percent (6%) of the gross transfer price, in addition to the transfer fee. For certain Unauthorized Transfers, YOU will pay US a transfer fee equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, a franchisee will pay a transfer fee for an unauthorized transfer. Specifically, the transfer fee for an unauthorized transfer is equal to 10 times the amount of Franchise Fees paid for the highest 12 of the 18 months preceding the transfer. This fee is paid to Beehive Homes at the time of the transfer.
This fee is significantly higher than the standard transfer fees for approved transfers, which are either $2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers. The substantial increase in cost for an unauthorized transfer underscores the importance of obtaining prior written consent from Beehive Homes before transferring a franchise.
It is important for prospective franchisees to understand the conditions under which a transfer would be considered unauthorized and to ensure they adhere to the terms of the franchise agreement to avoid incurring this substantial fee. Franchisees should carefully review the transfer provisions in the Franchise Agreement.