Are Beehive Homes franchisees and franchisors considered partners?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.1. Independent Contractors. Franchisor and Franchisee have the relationship of owner and independent contractor and are not and shall not be considered as joint venturers, partners, employees, servants or agents of each other, and neither shall have the power to bind or obligate the other except as set forth in this Agreement. Franchisee shall conspicuously identify itself in all dealings with customers, suppliers, public officials, employees and others as the owner of the Home under a franchise granted by Franchisor and shall place such notices of independent ownership on such forms, business cards, stationery and advertising and other materials as Franchisor may require from time to time. Franchisee agrees to include in all agreements and contracts a statement that each "franchise is independently owned and operated."
- 17.2. No Liability for Acts of Other Party. Franchisee agrees not to employ any of the Names and Marks in signing any contract or applying for any license or permit, or in a manner that may result in Franchisor's liability for any of Franchisee's indebtedness or obligations, and that Franchisee will not use the Names and Marks in any way that has not been expressly authorized. Neither Franchisor nor Franchisee will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that their respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing. Franchisor will be obligated for any damages to any person or property directly or indirectly arising out of the operation of the Home or the business Franchisee conducts pursuant to this Agreement.
- 17.3. Taxes. Neither Franchisor nor its Affiliates will have any liability for any sales, use, service, occupation, excise, gross receipts, income, property or other taxes, whether levied upon Franchisee or the Home, in connection with the business Franchisee conducts. Payment of all such taxes are Franchisee's sole responsibility.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the relationship between the franchisor and franchisee is explicitly defined as that of independent contractors, not partners. Section 17.1 of the agreement states that Beehive Homes and its franchisees are considered owner and independent contractor and should not be regarded as joint ventures, partners, employees, servants, or agents of each other. This distinction is crucial as it clarifies that neither party has the authority to legally bind or obligate the other, except as specifically outlined in the franchise agreement.
This independent contractor status has several implications for a prospective Beehive Homes franchisee. Franchisees are required to clearly identify themselves as the owners of their respective homes operating under a franchise granted by Beehive Homes in all interactions with customers, suppliers, public officials, and employees. This includes placing notices of independent ownership on forms, business cards, stationery, advertising, and other materials as required by Beehive Homes. Additionally, franchisees must include a statement in all agreements and contracts indicating that each franchise is independently owned and operated.
Furthermore, Section 17.2 emphasizes that franchisees cannot use the Beehive Homes' names and marks in any manner that could result in the franchisor being liable for the franchisee's debts or obligations. Neither party can make agreements, warranties, or incur debt on behalf of the other, nor represent their relationship as anything other than franchisor and franchisee, unless expressly authorized in writing. Beehive Homes is not obligated for any damages arising from the operation of the franchisee's home or business. This delineation of responsibilities and liabilities is a standard practice in franchising to protect both the franchisor and franchisee from potential legal and financial risks associated with each other's actions.
Finally, Section 17.3 clarifies that Beehive Homes and its affiliates bear no responsibility for any taxes related to the franchisee's business, including sales, use, service, income, or property taxes. The franchisee is solely responsible for the payment of all such taxes. This further reinforces the independent nature of the franchisee's business operations and financial obligations, typical in a franchise relationship.