Under the Beehive Homes assignment agreement, if any Shareholders/Partners/Members are trustees or trusts, can the beneficial interests in the trusts be assigned without prior written consent from Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If any [Shareholders/Partners/Members] are trustees or trusts:
- a) the beneficial interests in the trusts may not be assigned, transfers to successor trustees or special trustees may not be made even if the transfer is provided for in any trust agreement, and the trust agreement may not be amended without the prior written consent of Bee Hive Homes;
- b) Exhibit A lists all persons who are trustees of any nature or have beneficial interests in any [Shareholder's/Partner's/Member's] trust(s);
- c) this Assignment is not a consent to any future transfers of equity interest(s) of Assignee to any [Shareholder's/Partner's/Member's] trust beneficiaries based on any
condition including, but not limited to, attainment of a certain age or occurrence of any event. All future transfers or vesting of equity interest(s) of Assignee are subject to this Assignment; and
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if any Shareholders, Partners, or Members are trustees or trusts, the beneficial interests in those trusts cannot be assigned without the prior written consent of Beehive Homes. This requirement extends to transfers to successor trustees or special trustees, even if such transfers are provided for in any trust agreement. Furthermore, the trust agreement itself cannot be amended without Beehive Homes' prior written consent.
This provision ensures that Beehive Homes maintains control over who ultimately benefits from the ownership of the franchise. By requiring consent for any assignment of beneficial interests, Beehive Homes can vet potential beneficiaries and ensure they meet the company's standards. This protects the integrity of the Beehive Homes brand and system.
Additionally, the assignment agreement stipulates that Exhibit A must list all persons who are trustees of any nature or have beneficial interests in any Shareholder's, Partner's, or Member's trust(s). This provides Beehive Homes with a clear record of all parties involved in the ownership structure. The assignment does not constitute consent to any future transfers of equity interest(s) of Assignee to any Shareholder's/Partner's/Member's trust beneficiaries based on any condition, including, but not limited to, attainment of a certain age or occurrence of any event. All future transfers or vesting of equity interest(s) of Assignee are subject to this Assignment.
This requirement is designed to prevent unauthorized changes in ownership and to ensure that Beehive Homes has the opportunity to assess the suitability of any new individuals or entities gaining a beneficial interest in the franchise. Prospective franchisees should carefully consider these restrictions and ensure they are able to comply with Beehive Homes' requirements regarding trust arrangements and equity interest transfers.