Does the Beehive Homes franchisor need to approve changes to the Home's address?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, any change to the Home's address requires the prior written agreement of both the franchisee and Beehive Homes. The FDD specifies that the franchise granted is for a single Home at the location detailed in Section 3.1 of the agreement.
This requirement ensures that Beehive Homes maintains control over its brand and market presence. The franchisor also provides assistance in the initial selection and evaluation of the location, but the franchisee is ultimately responsible for securing the location and constructing the Home.
This clause protects the franchisor by ensuring that franchisees do not move locations without approval, which could impact brand consistency and territorial agreements. It also protects the franchisee, as Beehive Homes covenants not to sell another franchise within the franchisee's territory without their written consent.