What Franchise Agreement sections pertain to pre-opening purchase/lease obligations for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | FRANCHISE AGREEMENT SECTION | FRANCHISE DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| a. Site selection and | Sections 7.1 | Items 6 & 11 |
| acquisition/lease | ||
| b. Pre-opening purchase/lease | Sections 7.1 & 8.1 | Item 8 |
| c. Site development and other | Sections 7 & 8 | Items 6, 7 & 11 |
| pre-opening requirements |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 16–17)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Section 7.1 and 8.1 of the Franchise Agreement, along with Item 8 of the Franchise Disclosure Document, outline the franchisee's pre-opening purchase and lease obligations. This indicates that franchisees will find details regarding site selection, acquisition, and lease responsibilities within these sections of the agreement and disclosure document. Item 8 likely contains information about the franchisee's initial investment, including real estate and equipment costs.
Specifically, Beehive Homes does not own premises for lease to franchisees, making it the franchisee's responsibility to conform their site to applicable ordinances, codes, and zoning regulations. The franchisor provides general architectural and design drawings as guidelines, but the franchisee is responsible for engaging their own architect, attorneys, and contractors to prepare final plans and obtain necessary permits and licensing. The franchisor must approve these final plans in writing for compliance with trade dress guidelines before submission for building permits.
Beehive Homes will provide one standard exterior sign conforming to local requirements, but additional signs are the franchisee's responsibility. The franchisor is not obligated to become a party to, and will have no liability in connection with, any agreements pertaining to the construction, furnishing, equipping, and supplying of the Home. This division of responsibilities highlights the franchisee's significant role in securing and preparing the location for their Beehive Homes franchise, with the franchisor offering guidance and standards but not direct involvement in the purchasing or leasing process.