What factors can affect the costs for a Beehive Homes franchise?
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.
(5) Estimated premium costs for the first six months for general commercial liability, professional liability, including sexual assault and molestation, property and casualty, and workers' compensation insurance.
- (6) Professional fees for the first six months include accounting and legal fees.
- (7) Utilities for the first six months.
(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;
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, several factors can influence the costs associated with establishing and operating a franchise. The initial franchise fee is $75,000 for the first franchise, but this is only one component of the total investment. A significant factor is the cost of the building lot and the construction of the home, which can vary widely based on location and whether the building code is R-4 of the Residential Building Code or I-1 or I-2 of the International Building Code. These construction costs are subject to fluctuations in interest rates and material costs.
Operational costs are also subject to variability. The FDD notes that additional working capital needed to cover expenses and payroll costs during the first six months can fluctuate based on factors such as adherence to approved methods, management skills, local economic conditions, local demographics, wage rates, and competition. These costs can include shipping of furniture and fixtures, legal costs, insurance, licenses, security deposits, and utility hook-up costs. Insurance costs for the first six months, covering general commercial liability, professional liability (including sexual assault and molestation), property and casualty, and workers' compensation, can also vary.
Prospective Beehive Homes franchisees should carefully consider these factors and conduct thorough due diligence to estimate their initial investment and ongoing operational costs accurately. The FDD recommends reviewing these figures with a business advisor, as Beehive Homes does not offer financing to franchisees for these expenses. Understanding these variables is crucial for effective financial planning and ensuring the long-term success of the franchise.