For Beehive Homes, can the Franchisee change the address of the Home without written agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1. Location. Franchisor shall provide assistance to Franchisee in the selection and evaluation of the Location. However, Franchisee is solely responsible for selecting and obtaining the Location for the Home and for construction of the Home at the Location. Franchisee is solely
responsible for the negotiation of all agreements and other contracts relating to the Location and all construction and improvement thereon. Franchisee shall consult with its own legal counsel and other advisors prior to entering into any agreement or contract respecting the Location and any construction or improvement at the Location. It is specifically understood and agreed by and between the parties to this Agreement that the grant of a franchise pursuant to this Agreement is only for the construction of one Home to be located at the Location set forth in Section 3.1 and that there can be no change in the address of the Home without the prior written agreement of the parties to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, a franchisee cannot change the address of their Beehive Homes location without prior written agreement from both parties, the franchisee and the franchisor. The franchise agreement is specifically for the construction of one home at the location detailed in Section 3.1 of the agreement.
This requirement protects Beehive Homes by ensuring that each location operates within an approved territory and maintains brand consistency. It also allows Beehive Homes to manage market saturation and avoid conflicts between franchisees.
For a prospective franchisee, this means that the initial location is a critical decision. Changing locations later would require the franchisor's approval, which may not be granted. Therefore, thorough due diligence in selecting the initial site is essential. The franchisee is responsible for selecting and obtaining the location for the Home and for construction of the Home at the Location. The franchisee is also responsible for the negotiation of all agreements and other contracts relating to the Location and all construction and improvement thereon. Franchisee shall consult with its own legal counsel and other advisors prior to entering into any agreement or contract respecting the Location and any construction or improvement at the Location.