How must a Beehive Homes franchisee operate their Home and provide services under the Names and Marks?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
GATIONS OF FRANCHISEE
8.1. Home. Franchisee covenants to construct, equip, staff and own one Home, at its own expense, at the Location; to open and commence operation of such Home no later than the date which is three (3) years after the Effective Date of this Agreement and to continuously operate such Home using the System under the Names and Marks, in compliance with this Agreement and the Standards, and in such a manner as to provide courteous, uniform, high quality service to the public, during the Term of this Agreement. Franchisee acknowledges that, although Franchisor provides the
Standards, Franchisee has exclusive day-to-day control of the business and operation of the Home and Franchisor does not in any way possess or exercise such control.
- 8.2. Compliance With Standards. Franchisee will comply with the Standards, including Franchisor's specifications for all supplies, products and services. Franchisor may require Franchisee to purchase particular supplies, products or services meeting certain standards to maintain the common identity and uniqueness of the design, furnishings and appurtenances of the Homes, and Franchisee will comply with such requirements. Unless Franchisor specifies otherwise, Franchisee may purchase supplies, products and services from any source of distribution which meets the specifications and Standards.
- 8.3. Compliance With Manual. Franchisee covenants to adhere to the Standards contained in the Manual. Portions of the Manual may be state specific, and it is the Franchisee's obligation to identify those portions and to keep them current and up to date. The Franchisee will not disclose the contents of the Manual to any unauthorized person and upon termination of this Agreement will return all Forms of Manual to Franchisor.
- 8.4. Compliance with Laws. Franchisee covenants to comply with all applicable statutes, ordinances, rules and regulations of federal, state and local governments and agencies thereof which in any way regulate or affect the operation of its franchise business and agrees not to engage in any activity or practice which results in violation of any such statutes, ordinances, rules and regulations or which results in or may reasonably be anticipated to result in any public criticism of the Franchisor's System or any part thereof. Franchisee shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations, specifically, but not by way of limitation, employment relations with staff and providing housing to residents. Notwithstanding the foregoing, Franchisor shall provide reasonable assistance to Franchisee in the initial licensing of the Home with state and local governmental authorities for operation as a Home and thereafter Franchisee shall be solely responsible for maintaining such licensing.
- 8.5. Confidentiality. Franchisee will treat as confidential the Standards, the Manual and all other Proprietary Information. Proprietary Information means all information or materials concerning development, operation, marketing and licensing of the System, including the Standards and the Manual, whether developed by Franchisor, Franchisee or another Person. Franchisee acknowledges and agrees that it does not acquire any right or interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Home under the terms of this Agreement. Franchisee agrees that it will not use the Proprietary Information in any business or for any purpose other than in the development and operation of the Home under the System and will maintain the absolute confidentiality of the ProprietaryInformation during and after the Term.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee must operate their Beehive Homes location in strict adherence to the standards and guidelines set forth by the franchisor. The franchisee is required to construct, equip, staff, and own one Home at their own expense at the approved location. They must commence operations no later than three years after the effective date of the Franchise Agreement. The franchisee must continuously operate the Home using the Beehive Homes System under the Names and Marks, ensuring courteous, uniform, and high-quality service to the public throughout the agreement term. While the franchisor provides the standards, the franchisee maintains exclusive day-to-day control over the business operations.
The franchisee must comply with all standards, including specifications for supplies, products, and services. Beehive Homes may require franchisees to purchase particular supplies, products, or services that meet certain standards to maintain the common identity and uniqueness of the Homes. Unless otherwise specified by Beehive Homes, the franchisee can purchase supplies, products, and services from any source that meets the required specifications and standards. The franchisee also agrees to operate the Home under the trade name "BEE HIVE HOMES of __________" and must obtain prior written approval from Beehive Homes before using any other name.
The franchisee is obligated to display the trade name on all signs, stationery, business cards, advertising materials, and other media in strict compliance with the requirements outlined in the manual. They must also file and keep current a "fictitious name certificate" for the trade name in the relevant county and/or state. The franchisee cannot use any of the Names and Marks, the name "BEE HIVE HOMES®," or any form thereof in connection with any corporate, partnership, or other entity name, internet-related name, or other business without prior written approval from Beehive Homes. Upon termination of the agreement, the franchisee must immediately discontinue the use of the trade name and the Names and Marks. Non-compliance with the agreement's terms regarding the use of Names and Marks or any unauthorized use of the System will cause irreparable damage to Beehive Homes and constitutes a material breach of the agreement.