Under what condition is a transfer or assignment of the Beehive Homes Franchise or Franchise Agreement prohibited?

• 1. Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Shareholders may not, either voluntarily or by operation of law, make or permit:
  • a) any further transfer or assignment of the Franchise or the Franchise Agreement;
  • b) any pledge or encumbrance of the Franchise;
  • c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Shareholder;
    • d) the creation of new or additional equity interests in Assignee; or
  • e) any amendment of the terms of any organizational documents relating to Assignee.

Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Franchise including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.

[Alternate paragraph to be used for Assignment to Partnership.]

• 1. Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Partners may not, either voluntarily or by operation of law, make or permit:
  • a) any further transfer or assignment of the Franchise or the Franchise Agreement;
  • b) any pledge or encumbrance of the Franchise;
  • c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Partner;
    • d) the creation of new or additional equity interests in Assignee;
  • e) the change of a limited partnership interest to a general partnership interest or of a general partnership interest to a limited partnership interest; or
  • f) any amendment of the terms of any partnership agreement or other organizational documents relating to Assignee.

Equity interests, as used in this Assignment, include direct or indirect equity or beneficial interests in Assignee and the business risks associated with the Home including, but not limited to, interests stated as debt that include any type of risk-taking interest or any interest in the profits or appreciation of the Home.

[Alternate paragraph to be used for Assignment to Limited Liability Company.]

• 1. Without the prior written consent of Bee Hive Homes, Assignor, Assignee, and Members may not, either voluntarily or by operation of law, make or permit:
  • a) any further transfer or assignment of the Franchise or the Franchise Agreement;
  • b) any pledge or encumbrance of the Franchise;
  • c) any assignment, transfer, or pledge of any equity interest in Assignee including, but not limited to, transfers in any entity that is a Member;
    • d) the creation of new or additional equity interests in Assignee; or
  • e) any amendment of the terms of any operating agreement or other organizational documents relating to Assignee.

Source: Item 23 — RECEIPTS (FDD pages 34–123)