Does the Beehive Homes definition of 'Location' require Franchisor approval?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.10. "Location" means the real property on which the Home is located or is to be located, as approved by Franchisor, and as more specifically identified in Section 3.1 herein.
7.1. Location. Franchisor shall provide assistance to Franchisee in the selection and evaluation of the Location. However, Franchisee is solely responsible for selecting and obtaining the Location for the Home and for construction of the Home at the Location. Franchisee is solely
responsible for the negotiation of all agreements and other contracts relating to the Location and all construction and improvement thereon. Franchisee shall consult with its own legal counsel and other advisors prior to entering into any agreement or contract respecting the Location and any construction or improvement at the Location. It is specifically understood and agreed by and between the parties to this Agreement that the grant of a franchise pursuant to this Agreement is only for the construction of one Home to be located at the Location set forth in Section 3.1 and that there can be no change in the address of the Home without the prior written agreement of the parties to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the 'Location,' meaning the real property where the Home is or will be situated, requires Franchisor approval. Specifically, Section 2.10 defines 'Location' as the real property on which the Home is located or is to be located, as approved by Beehive Homes, and as more specifically identified in Section 3.1. This definition clearly indicates that the franchisor must approve the location of the Beehive Homes franchise.
Beehive Homes also provides assistance to the franchisee in the selection and evaluation of the Location. However, the franchisee is ultimately responsible for selecting and obtaining the Location for the Home and for the construction of the Home at that Location. The franchisee is also solely responsible for negotiating all agreements and other contracts related to the Location and any construction or improvement thereon.
Furthermore, the FDD states that the grant of a franchise is only for the construction of one Home at the Location set forth in Section 3.1, and there can be no change in the address of the Home without the prior written agreement of both parties. This reinforces the importance of the initial location approval and the need for franchisor consent for any subsequent changes.