For Beehive Homes, can the Franchisor modify the Franchisee's Territory from time to time?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor covenants that no franchise for an additional Home, whether franchised or owned by Franchisor, will be sold within the Franchisee's Territory during the Term of this Agreement without the prior written consent of Franchisee. The Territory shall be determined, and may be modified from time to time, by Franchisor and shall consist of a perimeter encompassing the Location and a population of at least 30,000 persons. Franchisee acknowledges and agrees that each territory in which there is a Home may be different from each other territory in terms of size, population, shape and other factors, it being further agreed that the determination of the size, population, shape and other factors regarding the territory shall be established by Franchisor. Franchisee hereby waives any and all claims against Franchisor and all other current and future franchisees regarding the size, population, or other factors differentiating the area encompassing Franchisee's Location from that of other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisor has the ability to modify a franchisee's territory from time to time. The FDD states that the territory will be determined and may be modified by Beehive Homes. The territory will consist of a perimeter encompassing the location of the Beehive Homes location and a population of at least 30,000 persons.
Beehive Homes franchisees acknowledge and agree that each territory may differ in size, population, shape, and other factors. The determination of these factors is established solely by Beehive Homes. Franchisees waive any claims against Beehive Homes or other franchisees regarding the size, population, or other factors that differentiate their location from others.
This clause gives Beehive Homes considerable latitude in adjusting territories, which could impact a franchisee's market and potential revenue. Prospective franchisees should carefully consider the implications of this clause and discuss with Beehive Homes how territory modifications are determined and what protections, if any, are in place to safeguard their business interests.