For Beehive Homes, what is the Franchisee responsible for regarding the construction of improvements?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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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. Franchisee acknowledges and agrees that each territory in which there is a Home may be different from each other territory in terms of size, population, shape and other factors, it being further agreed that the determination of the size, population, shape and other factors regarding the territory shall be established by Franchisor. Franchisee hereby waives any and all claims against Franchisor and all other current and future franchisees regarding the size, population, or other factors differentiating the area encompassing Franchisee's Location from that of other franchisees.
7.2. Home Design and Specifications. Franchisor will provide general architectural and design drawings, which may include elevations, floor plans and number of beds, as guidelines for the required "trade dress" of the Home. Any variation, alteration or modification of these guidelines shall require the prior written approval of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee bears significant responsibility for the construction and improvement of the Home location. While Beehive Homes offers assistance in selecting and evaluating the location, the franchisee is ultimately responsible for securing the location and constructing the Home. This includes negotiating all related agreements and contracts. Franchisees must seek their own legal counsel and advisors for these agreements.
Beehive Homes provides general architectural and design drawings as guidelines for the Home's trade dress. However, the franchisee is responsible for engaging their own architects, attorneys, contractors, and other advisors to prepare final plans, construct the improvements, and obtain all necessary permits and licensing. These final plans must be approved in writing by Beehive Homes to ensure compliance with trade dress guidelines before submission for building permits.
Beehive Homes will not be a party to, and holds no liability for, any agreements related to the construction, furnishing, equipping, and supplying of the Home. The franchisee is obligated to construct, equip, staff, and own the Home at their own expense, opening it no later than three years after the franchise agreement's effective date. The franchisee must also continuously operate the Home in compliance with the agreement and Beehive Homes' standards.