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What is the condition for Beehive Homes to provide assistance and guidance in negotiating supply contracts?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon YOUR request, WE will provide assistance and guidance in negotiating construction, equipment and supply contracts for the construction, furnishing and equipping of the Home.

However, YOU are solely responsible for the terms of all contracts and exercising adequate supervision.

WE do not assist in construction, remodeling or decorating of the site. (paragraph 7.2 of the Franchise Agreement)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)

What This Means (2025 FDD)

According to Beehive Homes's 2025 Franchise Disclosure Document, Beehive Homes will provide assistance and guidance in negotiating construction, equipment, and supply contracts for the construction, furnishing, and equipping of the Home upon the franchisee's request. However, the franchisee is solely responsible for the terms of all contracts and exercising adequate supervision. Beehive Homes does not assist in construction, remodeling, or decorating of the site.

This means that while Beehive Homes offers support in the negotiation phase, the franchisee ultimately bears the responsibility for the contracts' terms and ensuring proper oversight during the construction and setup of the Beehive Homes location. This is a fairly standard practice in franchising, where the franchisor provides guidance but the franchisee manages the execution and bears the associated risks.

Prospective franchisees should carefully consider this division of responsibility. While Beehive Homes's assistance can be valuable, franchisees need to be prepared to actively manage the contract negotiation process and diligently supervise all construction and supply-related activities. It would be prudent to seek legal and professional advice during these negotiations to ensure favorable terms and adequate protection.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.