What is a Trust Transfer in the context of a Beehive Homes franchise?

According to the 2025 Beehive Homes Franchise Disclosure Document, a Trust Transfer involves transferring an equity interest in the franchise to a grantor trust as defined in the Internal Revenue Code of 1986. For this type of transfer to be valid, the person transferring the interest, or that person and their spouse, must be the sole trustees of the trust. Additionally, the person making the transfer and their immediate family members must be the only beneficiaries of the grantor trust.

This provision allows a Beehive Homes franchisee to incorporate estate planning into their franchise ownership. By placing the franchise equity into a trust, the franchisee can manage the assets for their family's benefit while maintaining control as trustees. This can be a useful tool for succession planning and ensuring the long-term stability of the franchise within the family.

It is important to note that this type of transfer is considered a 'Permitted Transfer.' Beehive Homes requires that all such transfers do not result in a change of control of the franchise. The franchisee must also provide written notice to Beehive Homes at least 30 days before the proposed transfer, including details about the transferees. A non-refundable processing fee of $2,500.00 is required with the transfer request. The franchisee must also comply with Beehive Homes' procedures for processing permitted transfers, including signing all required documents, such as the current form of the Franchise Agreement.