Are Beehive Homes or its affiliates considered approved suppliers?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
There is no obligation for YOU, under the terms of the Franchise Agreement or any other device or practice, to purchase or lease any other goods, services or real estate for the Home or operation of the franchise business from US or any of OUR affiliates. Neither WE nor OUR affiliates are approved suppliers. None of OUR officers owns an interest in any supplier. WE do not have any arrangements providing for income to US resulting from purchases made from third parties. WE do not provide any material benefits to franchisees for purchasing products and services from designated suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are not required to purchase or lease goods, services, supplies, fixtures, equipment, computer hardware/software, or real estate from Beehive Homes, its designees, or approved suppliers. Beehive Homes may provide specifications for certain furniture, fixtures, equipment, supplies, and materials, including minimum standards for performance, warranties, design, and appearance. Franchisees can purchase items meeting these specifications from any source. Any supplier that can provide items meeting Beehive Homes' specifications is effectively an approved supplier. Franchisees can determine which suppliers meet the specifications without prior approval, but Beehive Homes retains the right to review these determinations.
Specifically, the FDD states that neither Beehive Homes nor its affiliates are approved suppliers. Furthermore, none of Beehive Homes' officers owns an interest in any supplier, and Beehive Homes does not receive income from franchisee purchases from third parties. Beehive Homes also does not provide material benefits to franchisees for purchasing from designated suppliers, nor does it offer purchasing or distribution cooperatives or negotiated special pricing arrangements with suppliers.
This arrangement provides Beehive Homes franchisees with flexibility in sourcing goods and services, potentially allowing them to find the most cost-effective or suitable options for their specific needs. However, franchisees must ensure that all purchased items meet Beehive Homes' specifications, and their supplier choices are subject to review by Beehive Homes. This balance allows for franchisee autonomy while maintaining brand standards and quality control within the Beehive Homes system.