Under the Beehive Homes assignment agreement, if any Shareholders/Partners/Members are trustees or trusts, can transfers to successor trustees or special trustees be made even if the transfer is provided for in any trust agreement without prior written consent from Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
l equity interests in Assignee.
-
- 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;
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 involved in the assignment agreement are trustees or trusts, specific restrictions apply to the transfer of beneficial interests. Transfers to successor trustees or special trustees cannot occur without the prior written consent of Beehive Homes, even if such transfers are provided for within any existing trust agreement.
This requirement ensures that Beehive Homes maintains control over the ownership and management structure of its franchises, even when equity interests are held in trust. By requiring prior consent, Beehive Homes can evaluate the suitability of potential successor trustees or special trustees and ensure they meet the company's standards and qualifications. This provision aims to protect the integrity and consistency of the Beehive Homes franchise system.
Furthermore, the FDD states that Beehive Homes has not reviewed any trust documents of any Shareholder's, Partner's, or Member's trust. Therefore, the assignment does not constitute an approval by Beehive Homes of any documents relating to any Shareholder's, Partner's, or Member's trust. If any of those documents conflict with or contradict the provisions of the assignment or Beehive Homes ownership policies, Beehive Homes will not be bound by those documents, and the provisions of the assignment will control. This highlights the importance of adhering to the assignment agreement and Beehive Homes' policies, even if they differ from the terms of any trust agreements.
For a prospective franchisee, this means that if you plan to hold equity interests in trust, you must obtain written consent from Beehive Homes for any transfers to successor or special trustees. It is crucial to ensure that all trust documents align with the Beehive Homes assignment agreement and ownership policies to avoid potential conflicts. This requirement is in place to protect the Beehive Homes brand and maintain standards across all franchise locations.