For Beehive Homes, is the Franchisee responsible for the expense of engaging their own sub-contractors?

According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is responsible for the expense of engaging their own sub-contractors. Specifically, the franchisee must 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. These expenses are the sole responsibility of the franchisee.

This means that a prospective Beehive Homes franchisee will need to budget for these costs in addition to the franchise fee and other initial investments. It is important to note that while Beehive Homes provides general architectural and design drawings, the franchisee is responsible for preparing the final plans and ensuring they comply with local regulations and the franchisor's trade dress guidelines. The franchisor must approve these final plans in writing before submission for building permits.

Beehive Homes will not be a party to any agreements pertaining to the construction, furnishing, equipping, and supplying of the Home, and will have no liability in connection with these agreements. This arrangement is typical in many franchise systems, where the franchisee bears the responsibility for site selection, construction, and build-out, while the franchisor provides brand standards and support.

Therefore, a potential Beehive Homes franchisee should carefully consider the costs associated with engaging these professionals and ensure they have sufficient capital to cover these expenses. They should also consult with experienced contractors and advisors to develop a realistic budget for the construction and build-out of their Beehive Homes location.