For Beehive Homes, is the Franchisee responsible for the expense of engaging their own contractors?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee, at its sole expense, shall be responsible to engage its own architect, attorneys, contractors, general and subs, and other advisors to prepare final plans, construct the improvements and obtain all required permits and licensing. Final plans must be approved in writing by the Franchisor for compliance with "trade dress" guidelines prior to submission for building permits. Franchisor shall not be obligated to become a party to, and will have no liability whatsoever in connection with, anyagreements pertaining to the construction, furnishing, equipping and supplying of the Home.
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 contractors. Specifically, the franchisee must engage 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, all at the franchisee's sole expense. These final plans must receive written approval from Beehive Homes to ensure compliance with trade dress guidelines before being submitted for building permits.
Beehive Homes explicitly states that it will not be a party to, nor have any liability in connection with, any agreements related to the construction, furnishing, equipping, and supplying of the Home. This reinforces the franchisee's sole responsibility for managing and financing these aspects of the business setup. The franchisor provides general architectural and design drawings as guidelines, but the franchisee bears the responsibility for turning those guidelines into a physical location.
This arrangement is typical in many franchise systems, where the franchisee is responsible for site selection, construction, and build-out according to the franchisor's standards. Prospective Beehive Homes franchisees should carefully consider these costs and responsibilities when evaluating the franchise opportunity. It is essential to factor in expenses for architects, attorneys, contractors, permits, and other advisors, as these can significantly impact the initial investment required to open a Beehive Homes location.