What does the additional working capital estimate cover for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) This is an estimate of YOUR additional working capital needed to cover expenses not otherwise specifically identified in this table and payroll costs during the first six months of operations. These estimates are based on the Franchisor's experience with over 200 active franchises. These amounts include such things as additional expenses for shipping of furniture and fixtures, legal costs, insurance, licenses, security deposits, utility hook up costs and the like. The costs vary widely from city to city and from state to state. YOUR costs will depend on factors such as: how much YOU follow the approved methods and procedures; YOUR management skill, experience and acumen; local economic conditions; local demographics; wage rates and competition.
- (9) These figures are based upon OUR experience with existing Homes. However, YOU should review these figures carefully with a business advisor before making any decision to purchase the franchise. WE do not offer financing to franchisees for any of these items. As noted above, these costs do not include land costs.
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the additional working capital estimate covers expenses not specifically identified in the initial investment table, along with payroll costs, for the first six months of operation. This includes expenses such as shipping furniture and fixtures, legal costs, insurance, licenses, security deposits, and utility hook-up costs. The estimated range for these additional funds is between $160,900 and $186,600. These estimates are based on the Franchisor's experience with over 200 active franchises.
Prospective Beehive Homes franchisees should note that these costs can vary significantly depending on location. Factors influencing these costs include adherence to approved methods, management skills, local economic conditions, demographics, wage rates, and competition. It is crucial for potential franchisees to carefully review these figures with a business advisor to assess their specific circumstances and potential financial needs.
Beehive Homes does not offer financing to franchisees for any of these initial investment items. The FDD explicitly states that these costs do not include land costs, which are a separate and potentially substantial expense. Therefore, franchisees must secure their own funding for all aspects of the initial investment, including land acquisition, construction, and working capital.