To whom are the building costs paid for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | High | Low | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee | $75,000 (1) | $75,000 | Lump Sum | One-third (1/3) upon signing and balance upon earlier of financing or permitting | US |
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the building costs, which range from $2,875,000 to $4,500,000, are paid to third-party lenders and contractors. These payments are made as the costs are incurred during the construction process. This substantial investment reflects the cost of constructing a Beehive Homes facility, which the FDD indicates varies in size from approximately 8,000 to 12,000 square feet.
Prospective Beehive Homes franchisees should carefully consider these significant building costs and the variables that influence them, such as interest rates, material costs, and applicable building codes. The FDD specifies that these codes could be R-4 of the Residential Building Code or I-1 or I-2 of the International Building Code, which can impact construction expenses. Since land costs are not included in these estimates, franchisees must also factor in the price of acquiring a suitable building lot, which the FDD notes can vary widely.
Given the magnitude of the building investment, it is crucial for potential Beehive Homes franchisees to conduct thorough due diligence. This includes obtaining detailed construction bids, securing financing, and understanding all local building requirements. Consulting with experienced construction professionals and financial advisors is highly recommended to ensure accurate cost projections and to mitigate potential financial risks. The franchisee should confirm with Beehive Homes whether they have preferred contractors or lenders.
Beehive Homes does not offer any financing for the building costs, so franchisees must secure their own funding through third-party lenders. This underscores the importance of having a solid financial plan and the ability to meet the financial obligations associated with constructing a Beehive Homes facility. The 'Method of Payment' is 'As Incurred,' meaning payments are made throughout the construction phase, aligning with typical construction financing practices.