Does transferring an Equity Interest to an Immediate Family Member relieve the transferring Equity Owner of any obligations under the Beehive Homes agreement?

According to Beehive Homes' 2025 Franchise Disclosure Document, transferring an equity interest to an immediate family member does not automatically relieve the transferring equity owner of their obligations under the Franchise Agreement. Specifically, if the transfer qualifies as a "Permitted Transfer," the transferring equity owner remains responsible for their obligations.

The FDD states that for a transfer to an immediate family member to be considered a Permitted Transfer, it must not result in a change of control of the franchise, equity interest, or the home. Additionally, Beehive Homes requires a written notice at least 30 days prior to the proposed transfer, including the identity and contact information of the proposed transferees. A nonrefundable processing fee of $2,500.00 must also be paid with the transfer request.

Furthermore, the transferring equity owner must comply with Beehive Homes' current procedure for processing Permitted Transfers, including the execution of all required documents. These documents include the then-current form of the Franchise Agreement, ensuring the proposed transferees assume all duties and obligations of the transferor related to the agreement, the home, and any other agreements between Beehive Homes and the transferor. Therefore, the original equity owner is not released from their obligations unless all these conditions are met and the appropriate assumption agreements are in place.