Who bears the expense of constructing, equipping, and staffing the Beehive Homes Home?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
GATIONS OF FRANCHISEE
8.1. Home. Franchisee covenants to construct, equip, staff and own one Home, at its own expense, at the Location; to open and commence operation of such Home no later than the date which is three (3) years after the Effective Date of this Agreement and to continuously operate such Home using the System under the Names and Marks, in compliance with this Agreement and the Standards, and in such a manner as to provide courteous, uniform, high quality service to the public, during the Term of this Agreement. Franchisee acknowledges that, although Franchisor provides the
Standards, Franchisee has exclusive day-to-day control of the business and operation of the Home and Franchisor does not in any way possess or exercise such control.
- 8.2. Compliance With Standards. Franchisee will comply with the Standards, including Franchisor's specifications for all supplies, products and services. Franchisor may require Franchisee to purchase particular supplies, products or services meeting certain standards to maintain the common identity and uniqueness of the design, furnishings and appurtenances of the Homes, and Franchisee will comply with such requirements. Unless Franchisor specifies otherwise, Franchisee may purchase supplies, products and services from any source of distribution which meets the specifications and Standards.
- 8.3. Compliance With Manual. Franchisee covenants to adhere to the Standards contained in the Manual. Portions of the Manual may be state specific, and it is the Franchisee's obligation to identify those portions and to keep them current and up to date. The Franchisee will not disclose the contents of the Manual to any unauthorized person and upon termination of this Agreement will return all Forms of Manual to Franchisor.
- 8.4. Compliance with Laws.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the franchisee is responsible for all expenses related to constructing, equipping, and staffing their Beehive Homes location. Specifically, the franchisee must construct, equip, staff, and own the Home at their own expense. This includes the cost of engaging architects, attorneys, contractors, and other advisors to prepare final plans, construct improvements, and obtain necessary permits and licensing. Beehive Homes provides general architectural and design drawings as guidelines, but the franchisee is responsible for any variations, alterations, or modifications to these guidelines.
Beehive Homes will provide one standard exterior sign bearing the name "BEE HIVE HOMES®", but additional signs can be purchased by the franchisee at their sole expense. The franchisee also bears the cost of providing sufficient and proper management, supervisory, and other personnel for the operation of the Home, in accordance with the Manual, Beehive Homes's Standards and requirements, and applicable laws and regulations.
This arrangement is typical in franchising, where the franchisee generally bears the costs of establishing and operating their specific location while adhering to the franchisor's standards and systems. Prospective Beehive Homes franchisees should carefully consider these costs when evaluating the financial feasibility of the franchise, including construction expenses, equipment purchases, and ongoing staffing costs.