In a Trust Transfer for a Beehive Homes franchise, who must be the sole beneficiaries of the grantor trust?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee or, if Franchisee is a corporation or other legal entity its Equity Owner(s), may Transfer an Equity Interest to a grantor trust (a defined in the Internal Revenue Code of 1986, as amended) provided the transferor or the transferor and the transferor's spouse are the sole trustees of the grantor trust and the transferor and transferor's Immediate Family Members are the sole beneficiaries of the grantor trust.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, in the event of a trust transfer, the transferor and the transferor's immediate family members must be the sole beneficiaries of the grantor trust. Additionally, the transferor or the transferor and their spouse must be the sole trustees of the grantor trust.
This stipulation ensures that control and benefit of the Beehive Homes franchise remain within the original franchisee's family unit during the trust transfer. This is a common practice in franchising to maintain the integrity and operational consistency of the franchise system.
For a prospective Beehive Homes franchisee, this means that if they plan to transfer their equity interest to a grantor trust, the beneficiaries must be immediate family members. This requirement should be carefully considered when estate planning, as it restricts who can benefit from the franchise through the trust. It is important to consult with legal and financial advisors to ensure compliance with these transfer conditions.