For Beehive Homes, does the Franchisor have any liability in connection with agreements pertaining to supplying the Home?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes, as the Franchisor, bears no obligation or liability regarding agreements related to the construction, furnishing, equipping, and supplying of the Home.
This means that as a prospective Beehive Homes franchisee, you are solely responsible for engaging your own architects, attorneys, contractors, and other advisors to prepare final plans, construct improvements, and secure all necessary permits and licensing. While Beehive Homes provides general architectural and design guidelines, the onus is on you to ensure the Home adheres to these guidelines and all local regulations.
This arrangement is typical in many franchise systems, where the franchisee assumes responsibility for the physical setup of the location while adhering to the franchisor's brand standards. It's crucial for potential franchisees to carefully vet and select qualified professionals to avoid construction delays, cost overruns, or non-compliance issues, as Beehive Homes will not be held liable for any problems that arise during this process.
Therefore, it is important for a prospective franchisee to understand that they are responsible for all aspects of the construction, furnishing, equipping, and supplying of the Home and should budget accordingly.