What are the consequences if a Beehive Homes resident manager does not successfully complete the training program?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or its resident manager does not complete the required training program to the satisfaction of Franchisor, then Franchisor may terminate this Agreement in accordance with the provisions hereof, or in lieu thereof, Franchisor may elect to provide such additional personnel as Franchisor in its sole discretion deems necessary, to train Franchisee's staff at the site of the Home and enable Franchisee to open the Home. Franchisee will pay all costs of such additional personnel, including, without limitation, salaries, lodging, meals and round trip transportation. Such additional personnel will remain at the Home at Franchisee's expense until Franchisor determines that Franchisee and its staff are capable of operating the Home.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 24)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, if a franchisee or their resident manager does not complete the required training program to Beehive Homes' satisfaction, Beehive Homes has two options. First, Beehive Homes may terminate the Franchise Agreement. Alternatively, Beehive Homes can choose to provide additional personnel to train the franchisee's staff at the Beehive Homes location, to enable the franchisee to open the Home.
The franchisee is responsible for covering all costs associated with these additional personnel. These costs include salaries, lodging, meals, and round-trip transportation. These additional personnel will remain at the Home, at the franchisee's expense, until Beehive Homes determines that the franchisee and their staff are capable of operating the Home.
This means that a franchisee could face significant additional expenses if their resident manager does not successfully complete the initial training. The franchisee will be responsible for the costs of the additional training personnel until Beehive Homes is satisfied with the staff's ability to operate the Home. This could potentially delay the opening of the Beehive Homes location and increase the initial investment required.