Do the estimated initial costs for a Beehive Homes franchise include land costs?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) YOU will be required to obtain a building lot for YOUR Home and construct the Home on the lot in accordance with specifications. Homes vary in size from approximately 8,000 to 12,000 square feet. Since building lot prices vary widely, WE cannot estimate this item of expense. Home construction costs vary widely and are influenced by such variables as interest rates, material costs and the applicable building code, whether R-4 of the Residential Building Code or I-1 or I-2 of the International Building Code.
(3) Furniture, Fixtures and Equipment include beds, dressers, night stands, easy chairs, living room furnishings, television, kitchen utensils and appliances and laundry appliances.
(4) Initial stores of Supplies, Materials and Inventory include office equipment and supplies, firs aid supplies, and cleaning supplies.
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the estimated initial costs do not include land costs. Item 7 clarifies that franchisees are required to obtain a building lot and construct the Home according to specifications. The document explicitly states that because building lot prices vary widely, Beehive Homes cannot provide an estimate for this expense.
Furthermore, the cost of constructing the Beehive Homes facility itself is a significant investment, with estimates ranging from $2,875,000 to $4,500,000. These construction costs are influenced by factors such as interest rates, material costs, and the applicable building code. The initial investment table lists "Building" as a separate expenditure, highlighting its significance in the overall initial investment.
Prospective Beehive Homes franchisees should be aware that securing land and constructing the facility will be a substantial out-of-pocket expense that is not included in the franchise's estimated initial investment. It is crucial for potential franchisees to conduct thorough market research to understand local land costs and construction expenses in their desired area. They should also consult with financial advisors to assess their ability to cover these significant costs.