For Beehive Homes, what is the condition for constructing additional Homes or increasing the number of beds at the Location?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2. Home Design and Specifications. Franchisor will provide general architectural and design drawings, which may include elevations, floor plans and number of beds, as guidelines for the required "trade dress" of the Home. Any variation, alteration or modification of these guidelines shall require the prior written approval of Franchisor. Franchisor will also provide an itemization of all furnishings, equipment and supplies to be used in the operation of the Home. Additional Homes or any increase in the number of beds may be constructed at the Location but only with Franchisor's prior written approval and provided that each additional Home or increase in the number of beds is subject to a separate Franchise Agreement and Franchise Fee.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, constructing additional homes or increasing the number of beds at an existing location requires prior written approval from Beehive Homes. Furthermore, each additional home or increase in the number of beds is subject to a separate Franchise Agreement and Franchise Fee. This means that a franchisee cannot simply expand their existing Beehive Homes facility without going through the formal process of obtaining a new franchise agreement and paying the associated fees.
This requirement ensures that Beehive Homes maintains control over its brand standards and the quality of care provided at each location. By requiring a separate franchise agreement and fee for each expansion, Beehive Homes can also ensure that it is adequately compensated for the additional support and resources it provides to the franchisee. This is a common practice in franchising, as franchisors need to protect their brand and ensure consistent quality across all locations.
For a prospective Beehive Homes franchisee, this means that any plans for future expansion should be carefully considered and discussed with Beehive Homes early on. The franchisee should factor in the additional franchise fees and the time required to obtain approval and enter into a new franchise agreement. It is also important to note that Beehive Homes has the right to deny approval for expansion, so franchisees should not assume that they will be able to automatically expand their business.