In the Beehive Homes Franchise Agreement, who is considered the 'Franchisee'?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
the Names and Marks.
- E. Franchisee is desirous of acquiring the right, franchise and sub-license to construct or acquire a Home conforming to the Standards (as defined below) and to operate the Home using the System under the Names and Marks at the Location (as defined in Section 3.1). Franchisor is ready and willing to grant such a right, franchise and sub-license to Franchisee upon the terms and subject to the conditions hereinafter set forth.
AGREEMENT
NOW, THEREFORE, in consideration of the terms, conditions and covenants contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, it is understood and agreed by and among the parties hereto as follows:
I. ACKNOWLEDGMENTS. Franchisee acknowledges to have carefully read this Agreement and the Bee Hive Homes Franchise Disclosure Document and understands and accepts the terms, conditions and covenants contained in this Agreement as being reasonably necessary to maintain Franchisor's high standards of quality and service and the uniformity of those Standards at each Home using the System under the Names and Marks.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the 'Franchisee' refers to the party acquiring the right to operate a Beehive Homes location. Specifically, Recital E of Item 23 states that the Franchisee is 'desirous of acquiring the right, franchise and sub-license to construct or acquire a Home conforming to the Standards (as defined below) and to operate the Home using the System under the Names and Marks at the Location (as defined in Section 3.1).' This indicates the Franchisee is the individual or entity seeking to establish and run a Beehive Homes business.
Furthermore, the document outlines various obligations and acknowledgments of the Franchisee. For example, the Franchisee acknowledges reading the Franchise Agreement and Disclosure Document, understanding the terms, and conducting an independent investigation of the business venture. The Franchisee is also responsible for selecting and obtaining the location for the Home and negotiating related agreements. These stipulations highlight the Franchisee's active role and responsibilities in setting up and managing the Beehive Homes franchise.
In the event of an assignment of the Franchise Agreement, the document clarifies the roles of both the Assignor (original Franchisee) and Assignee (new Franchisee). Paragraph 5 of Item 23 states that after the assignment date, all references to 'Franchisee' in the Franchise Agreement refer to both Assignor and Assignee jointly and severally, indicating shared responsibility. This is an important consideration for anyone considering transferring their Beehive Homes franchise, as they may still retain some liability even after the assignment.