For Beehive Homes, is the Franchisee solely responsible for the negotiation of all contracts relating to improvements on the Location?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is indeed solely responsible for negotiating all agreements and contracts related to the location and any construction or improvements made to it. While Beehive Homes will provide assistance in the selection and evaluation of the location, the franchisee bears the ultimate responsibility for securing the location and constructing the home. This includes consulting with their own legal counsel and advisors before entering into any agreements.
This arrangement places a significant responsibility on the franchisee, requiring them to manage the entire construction and improvement process. Franchisees must engage their own architects, attorneys, contractors, and other advisors to prepare final plans, construct improvements, and obtain all necessary permits and licensing. The final plans, however, must be approved in writing by Beehive Homes to ensure compliance with their trade dress guidelines before submission for building permits.
Beehive Homes explicitly states that they will not be obligated to become a party to, and will have no liability whatsoever in connection with, any agreements pertaining to the construction, furnishing, equipping, and supplying of the home. This underscores the franchisee's independent role and financial responsibility in these matters. It is crucial for prospective franchisees to carefully consider these obligations and ensure they have the necessary resources and expertise to manage these aspects of the business effectively.
This level of franchisee responsibility is common in many franchise systems, particularly those involving real estate and construction. Franchisees should conduct thorough due diligence, including consulting with experienced professionals, to fully understand the scope of their obligations and potential costs associated with securing and improving the location for their Beehive Homes franchise.