What is the definition of 'Home' for purposes of determining the Beehive Homes Franchise Royalty?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Bee Hive Homes, Inc. (the "Franchisor"), a Utah corporation, is engaged in the business of developing, operating and franchising in various states a unique kind of Home (as defined below) for residential care, assisted living, rehabilitation, memory care and/or hospice care for individuals. Standards of interior and exterior design, furnishings and equipment for the Homes have been established by the Franchisor which are original and unique.
For purposes of determining the Franchise Royalty, "Gross Revenues" is defined to be the gross receipts of every kind and nature whatsoever received by Franchisee directly or indirectly in connection with the operation of the franchised business, the Home and/or providing of services, excepting only the amount of sales or use taxes levied upon the sale of goods or services by a governmental taxing authority and actually paid to said taxing authority.
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, a 'Home' is defined as a unique facility for residential care, assisted living, rehabilitation, memory care, and/or hospice care for individuals. Beehive Homes has established standards for the interior and exterior design, furnishings, and equipment of these Homes. These standards are considered original and unique to the Beehive Homes brand.
The definition of 'Home' is important because the franchise royalty is based on the gross revenues generated by the Home. Gross revenues include all receipts of any kind received by the franchisee in connection with the operation of the franchised business and the provision of services at the Home. The only exception to this is the amount of sales or use taxes levied by a governmental taxing authority and actually paid to that authority.
Beehive Homes also provides general architectural and design drawings as guidelines for the required 'trade dress' of the Home, including elevations, floor plans, and the number of beds. Any changes to these guidelines require prior written approval from Beehive Homes. Franchisees are responsible for engaging their own professionals to prepare final plans, construct improvements, and obtain necessary permits and licensing, but the final plans must be approved by Beehive Homes to ensure compliance with trade dress guidelines. Additional Homes or increases in bed numbers at the location require separate Franchise Agreements and Franchise Fees, and also need prior written approval from Beehive Homes.