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Considering the litigation disclosed in Item 3, does Beehive Homes provide any assistance related to compliance with fair housing laws as part of their Item 11 obligations?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

G

Except as listed below, WE are not required to provide you with any assistance. WE undertake certain obligations to YOU in connection with a Bee Hive Homes franchise. These

obligations are set out below and are the same for initial as well as all additional franchise purcha

What This Means (2025 FDD)

According to the 2025 Beehive Homes Franchise Disclosure Document, Item 11 outlines the franchisor's assistance, but it does not explicitly state that Beehive Homes provides assistance related to compliance with fair housing laws. Item 3 details litigation, including a case filed by the National Fair Housing Alliance against Beehive Homes alleging discrimination in violation of The Fair Housing Act, among other statutes. While this case was settled, the FDD does not indicate that Beehive Homes offers specific support to franchisees to ensure compliance with fair housing laws as part of its standard obligations.

Item 11 specifies the obligations Beehive Homes will perform before the opening of a franchisee's Beehive Home, such as granting a license to use trademarks, providing architectural drawings, delivering a standard sign, providing training, and offering opening supervision. The training provided is in the various practices, policies, and procedures for the operation of a Beehive Home. However, the FDD does not detail whether this training includes specific instruction on fair housing law compliance.

Prospective franchisees should note that while Beehive Homes provides manuals and may offer consultation, the FDD explicitly states that, except as listed, Beehive Homes is not required to provide any assistance. Given the litigation history related to fair housing, it would be prudent for potential franchisees to inquire directly with Beehive Homes about the extent of their support and training in fair housing law compliance to mitigate potential legal risks and ensure ethical business practices.

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.