What is the Beehive Homes franchisee's obligation regarding the real property and improvements that comprise the Home?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will own, directly or indirectly, fee simple title to the real property and improvements (the "Real Property") that comprise the Home and
the Location, together with all personal property ("Personal Property") used in connection with the operation of the Franchise, at all times during the Term of this Agreement, subject to such liens and encumbrances as the Franchisor has agreed to in writing. Franchisee shall not transfer any interest in such Real Property or Personal Property except in compliance with this Agreement. The Franchisee shall maintain legal possession and Control of the Home and the Location at all times during the Term of this Agreement and shall promptly deliver to Franchisor a copy of any notice of default received from any mortgagee or other lien holder.
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. Franchisor will also provide an itemization of all furnishings, equipment and supplies to be used in the operation of the Home. Additional Homes or any increase in the number of beds may be constructed at the Location but only with Franchisor's prior written approval and provided that each additional Home or increase in the number of beds is subject to a separate Franchise Agreement and Franchise Fee.
Franchisee, at its sole expense, shall be responsible to 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. Final plans must be approved in writing by the Franchisor for compliance with "trade dress" guidelines prior to submission for building permits. Franchisor shall not be obligated to become a party to, and will have no liability whatsoever in connection with, anyagreements pertaining to the construction, furnishing, equipping and supplying of the Home.
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.
- 7.3. Signs. Franchisor will provide to Franchisee one standard exterior sign which bears the name "BEE HIVE HOMES®" and which conforms with local requirements as to size and style. Additional signs may be purchased by Franchisee at its sole expense in accordance with specifications furnished by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is responsible for several aspects of the real property and improvements related to their Beehive Homes location. The franchisee must own, either directly or indirectly, the title to the real property and improvements of the Home, as well as all personal property used for the franchise operation, throughout the term of the agreement. This ownership is subject to any liens or encumbrances that Beehive Homes has agreed to in writing. The franchisee must maintain legal possession and control of the Home and promptly provide Beehive Homes with copies of any default notices from mortgagees or lien holders. The franchisee cannot transfer any interest in the real or personal property without complying with the franchise agreement.
Beehive Homes provides general architectural and design drawings as guidelines for the Home's trade dress, including elevations, floor plans, and the number of beds. Any changes to these guidelines require prior written approval from Beehive Homes. Beehive Homes also provides an itemization of furnishings, equipment, and supplies needed for operation. The franchisee is responsible for engaging their own professionals, such as architects, attorneys, and contractors, to prepare final plans, construct improvements, and obtain necessary permits and licensing, all at the franchisee's sole expense. Final plans must be approved by Beehive Homes to ensure compliance with trade dress guidelines before submission for building permits. Beehive Homes is not liable for any agreements related to the construction, furnishing, equipping, and supplying of the Home.
The franchisee is responsible for selecting and obtaining the location for the Home and for its construction. They are also responsible for negotiating all agreements and contracts related to the location and any construction or improvements. The franchisee must consult with their own legal counsel and advisors before entering into any agreements. The franchise is granted for the construction of one Home at the specified location, and any change in address requires Beehive Homes' prior written agreement. Beehive Homes will provide one standard exterior sign bearing the name "BEE HIVE HOMES®" that conforms to local requirements. Additional signs can be purchased by the franchisee at their own expense, following Beehive Homes' specifications.