Does Beehive Homes have arrangements providing for income resulting from franchisee purchases from third parties?
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, Beehive Homes does not have arrangements providing for income resulting from franchisee purchases from third parties. The FDD states that franchisees are not obligated to purchase or lease any goods, services, or real estate from Beehive Homes or its affiliates.
Beehive Homes may provide franchisees with specifications for certain items of 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. Beehive Homes does not maintain a list of approved suppliers or criteria for approving suppliers; any supplier that meets the specifications is effectively an approved supplier.
Franchisees must get approval from Beehive Homes for all advertising to ensure it conforms to the brand's trade dress standards. However, there is no requirement to purchase or lease any goods, services, or real estate from Beehive Homes or its affiliates, and neither Beehive Homes nor its affiliates are approved suppliers. Beehive Homes' officers do not own an interest in any supplier, and Beehive Homes does not receive income from franchisee purchases from third parties. Beehive Homes also does not offer purchasing or distribution cooperatives or negotiated special pricing arrangements with suppliers for franchisees.