For Beehive Homes, is the Franchisee responsible for the expense of engaging their own attorneys?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ctly to the provider.
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.
Franchisor covenants that no franchise for an additional Home, whether franchised or owned by Franchisor, will be sold within the Franchisee's Territory during the Term of this Agreement without the prior written consent of Franchisee. The Territory shall be determined, and may be modified from time to time, by Franchisor and shall consist of a perimeter encompassing the Location and a population of at least 30,000 persons.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of engaging their own attorneys. Specifically, the franchisee must consult with their own legal counsel prior to entering into any agreement or contract respecting the location and any construction or improvement at the location.
Furthermore, the franchisee is responsible for engaging their own architect, attorneys, contractors, general and subs, and other advisors to prepare final plans, construct the improvements, and obtain all required permits and licensing. This means that the franchisee will bear the costs associated with these professionals.
In the event that the franchisee engages in non-compliance or unauthorized use of the Beehive Homes system or names and marks, the franchisee must pay all costs and expenses, including reasonable attorneys' fees, expert fees, costs, and other expenses of litigation that Beehive Homes and/or its affiliates may incur in connection with the franchisee's non-compliance. This highlights the importance of adhering to the franchise agreement and standards to avoid potential legal expenses.