What are the Beehive Homes franchisee's obligations regarding constructing, equipping, and staffing the Home?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1. Home. Franchisee covenants to construct, equip, staff and own one Home, at its own expense, at the Location; to open and commence operation of such Home no later than the date which is three (3) years after the Effective Date of this Agreement and to continuously operate such Home using the System under the Names and Marks, in compliance with this Agreement and the Standards, and in such a manner as to provide courteous, uniform, high quality service to the public, during the Term of this Agreement. Franchisee acknowledges that, although Franchisor provides the
Standards, Franchisee has exclusive day-to-day control of the business and operation of the Home and Franchisor does not in any way possess or exercise such control.
- 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.
7.3. 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.
7.5. Opening Supervision. Franchisor will provide reasonable opening supervision to assist Franchisee in the preparation and opening of the Home. Such supervision shall include assistance in engaging staff, training personnel in food preparation, marketing, inventorycontrol and promotional programs in connection with the opening of the Home. Franchisee shall notify Franchisor in writing at least four (4) weeks prior to completion of construction of the Home so that Franchisor may schedule representatives for commencement of opening procedures. The opening date shall be set by agreement of Franchisor and Franchisee.
11.1. Management and Supervision. Franchisee, at its own expense, shall provide sufficient and proper management, supervisory and other personnel for the operation of the Home, in accordance with the Manual, Franchisor's Standards and requirements and applicable federal, state and local laws and regulations and industry standards.
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 responsibilities in establishing and maintaining their location. The franchisee is obligated to construct, equip, staff, and own the Home at their own expense. They must open the Home no later than three years after the franchise agreement's effective date and continuously operate it according to the Beehive Homes system, using the brand's names and marks. This includes providing high-quality service to the public, adhering to the standards set forth in the franchise agreement. While Beehive Homes provides the operational standards, the franchisee has day-to-day control over the business.
Regarding construction, Beehive Homes will provide general architectural and design drawings for the Home's trade dress. However, the franchisee is responsible for engaging their own professionals, such as architects, attorneys, and contractors, to prepare final plans, construct 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 provide one standard exterior sign bearing the brand name, but additional signs are the franchisee's responsibility.
For staffing, the franchisee must provide sufficient and proper management, supervisory, and other personnel for the Home's operation. This must be done in accordance with the Beehive Homes manual, the franchisor's standards and requirements, and all applicable federal, state, and local laws, regulations, and industry standards. Beehive Homes also offers assistance in engaging staff and training personnel in areas such as food preparation, marketing, and inventory control during the opening phase. The franchisee is responsible for maintaining the Home's interior and exterior, along with the surrounding premises, to the highest standards of cleanliness, orderliness, sanitation, and repair, as per Beehive Homes' standards.