Is the franchisee responsible for supervising the construction of their Beehive Homes location?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
It will be YOUR responsibility to engage, at YOUR expense, an architect and an engineer who will prepare the final specifications and drawings, and provided necessary stamps and certifications to be submitted for approval by local government agencies and by the franchisor, all of whom must approve prior to the start of construction.
Upon YOUR request, WE will provide assistance and guidance in negotiating construction, equipment and supply contracts for the construction, furnishing and equipping of the Home.
However, YOU are solely responsible for the terms of all contracts and exercising adequate supervision.
WE do not assist in construction, remodeling or decorating of the site. (paragraph 7.2 of the Franchise Agreement)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the franchisee is responsible for supervising the construction of their location. While Beehive Homes provides general architectural and design drawings, the franchisee must engage an architect and engineer to prepare final specifications and drawings. These professionals will also provide necessary stamps and certifications for approval by local government agencies and Beehive Homes. These approvals must be secured before construction begins. Beehive Homes may offer assistance and guidance in negotiating construction, equipment, and supply contracts. However, the franchisee is ultimately responsible for the terms of all contracts and for exercising adequate supervision over the construction process. Beehive Homes does not assist in the physical construction, remodeling, or decorating of the site.
This means that while Beehive Homes offers some initial support with design and planning, the franchisee takes on the primary responsibility for managing the construction project. This includes hiring contractors, ensuring compliance with local codes and regulations, and overseeing the work to ensure it meets the required standards. The franchisee also bears the financial responsibility for these activities.
Prospective Beehive Homes franchisees should carefully consider the implications of this responsibility. Construction projects can be complex and time-consuming, requiring significant management expertise. Franchisees may want to seek advice from experienced construction professionals to help them navigate the process. It is also important to factor in the potential costs and time delays associated with construction when evaluating the overall investment required to open a Beehive Homes franchise.