Can Beehive Homes directly convey its contractual obligations to the franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the following responsibilities to Franchisee under this Agreement. Franchisor reserves the right to fulfill some or all of these responsibilities through one or more of its Affiliates or through unrelated third parties, in its sole business judgment. Franchisor may require Franchisee to make payment for any resulting services or products directly to the provider.
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
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.
- 7.3. Signs. Franchisor will provide to Franchisee one standard exterior sign which bears the name "BEE HIVE HOMES®" and which conforms with local requirements as to size and style. Additional signs may be purchased by Franchisee at its sole expense in accordance with specifications furnished by Franchisor.
- 7.4. Training. Franchisor will provide training, prior to opening of the Home for business, in the various practices, policies and procedures for operation of the Home. Franchisee, and if there is more than one Franchisee at least one of the Franchisees, and the resident manager are required to complete a training program of up to three (3) days duration at a location(s) designated by Franchisor, which may include the corporate office and/or an operating Franchise. The Franchisee
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes has specific obligations to the franchisee under the Franchise Agreement. Beehive Homes outlines several responsibilities to the franchisee. These include providing assistance in the selection and evaluation of the location for the Beehive Homes facility. Beehive Homes also provides general architectural and design drawings to guide the franchisee in maintaining the required trade dress. Additionally, Beehive Homes will provide one standard exterior sign bearing the name "BEE HIVE HOMES®".
Beehive Homes also commits to providing training prior to the opening of the Home for business. This training covers the practices, policies, and procedures for operating the Home. The franchisee, or at least one franchisee if there are multiple, and the resident manager are required to complete a training program of up to three days. This training takes place at a location designated by Beehive Homes, which may include the corporate office or an operating franchise.
However, Beehive Homes reserves the right to fulfill these responsibilities through its affiliates or unrelated third parties, using its sole business judgment. If Beehive Homes uses a third party, they may require the franchisee to make payments for resulting services or products directly to that provider. While Beehive Homes offers assistance and resources, the franchisee is ultimately responsible for selecting and obtaining the location, constructing the Home, and managing the day-to-day operations, ensuring compliance with the standards and the law.