What accounting and record-keeping procedures must a Beehive Homes franchisee adopt?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1. Reporting. Franchisee shall adopt and use such accounting and record keeping procedures as may be required by Franchisor for the reasonable conduct of its business. In addition, Franchisee agrees to deliver to Franchisor monthly profit and loss statements and such other information as may be requested from time to time by Franchisor, within ten (10) days after the end of each calendar month. In addition, Franchisee agrees to deliver to Franchisor copies of all of Franchisee's tax returns within ten (10) days after filing such returns with federal or state taxing authorities.
- 9.2. Data Management Software. Franchisee covenants to fully implement and use any third party data management software (the "Software") specified by Franchisor. Currently, the Blue Step Software is the specified Software. Franchisee will not be required to pay any up-front cost for the Software, but will be required to pay all costs of use of the Software, including licensing, training and utilization of employees, and shall maintain suitable internet access and provide Franchisor with continuous online access to the Franchisee's Software database. In addition, Franchisee shall use exclusively any call system specified by Franchisor.
- 9.3. Inspections and Audits. The accounts, books, records and tax returns of the Franchisee shall be open for inspection, examination and audit by Franchisor and its authorized representatives at all times. Any such inspection, examination or audit shall be at the requesting party's cost and expense unless (i) the same is necessitated by Franchisee's failure to prepare and deliver its data, reports and statements required hereunder, (ii) the same is necessitated by Franchisee's failure to keep and preserve records as hereinabove provided, or (iii) such inspection discloses that any such data, report or statement made and delivered by Franchisee is in error to an extent of two (2%) percent or more, in any of which events, such cost and expense shall be borne and paid directly by Franchisee, or be reimbursed to Franchisor, as the case may be, immediately upon demand.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees must adopt and use the accounting and record-keeping procedures required by Beehive Homes for the reasonable operation of the business. Franchisees must also provide monthly profit and loss statements and any other information requested by Beehive Homes within ten days after the end of each calendar month. Additionally, franchisees must submit copies of all tax returns to Beehive Homes within ten days of filing them with federal or state taxing authorities.
Beehive Homes franchisees are required to implement and use any third-party data management software specified by Beehive Homes. Currently, the specified software is Blue Step Software. While franchisees won't have to pay any upfront costs for the software, they are responsible for all costs associated with its use, including licensing, training, and employee utilization. Franchisees must also maintain suitable internet access and provide Beehive Homes with continuous online access to their software database. Franchisees must also use any call system specified by Beehive Homes.
The accounts, books, records, and tax returns of the franchisee are open for inspection, examination, and audit by Beehive Homes and its authorized representatives at all times. Typically, the cost of these inspections or audits is borne by the requesting party. However, the franchisee will bear the costs if the inspection is due to the franchisee's failure to provide required data, reports, or statements, failure to keep and preserve records, or if the inspection reveals errors of two percent or more in the data, reports, or statements provided by the franchisee.