On what experience are the working capital estimates for Beehive Homes based?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) This is an estimate of YOUR additional working capital needed to cover expenses not otherwise specifically identified in this table and payroll costs during the first six months of operations. These estimates are based on the Franchisor's experience with over 200 active franchises. These amounts include such things as additional expenses for shipping of furniture and fixtures, legal costs, insurance, licenses, security deposits, utility hook up costs and the like. The costs vary widely from city to city and from state to state. YOUR costs will depend on factors such as: how much YOU follow the approved methods and procedures; YOUR management skill, experience and acumen; local economic conditions; local demographics; wage rates and competition.
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 estimates for additional working capital are based on the franchisor's experience with over 200 active franchises. This working capital is intended to cover expenses not specifically identified in the initial investment table, as well as payroll costs, for the first six months of operation. These costs can include shipping for furniture and fixtures, legal costs, insurance, licenses, security deposits, and utility hook-up costs.
The FDD indicates that the costs associated with working capital can vary significantly depending on location, management skills, and local economic conditions. The estimated range for these additional funds is between $160,900 and $186,600 for the first six months. These figures are based on Beehive Homes' experience with existing homes.
Prospective franchisees should carefully review these figures with a business advisor, as the document explicitly states. Factors such as adherence to approved methods, management skills, local economic conditions, demographics, wage rates, and competition can all influence actual costs. The FDD also notes that these costs do not include land costs, which are a separate and potentially substantial expense.