Does the Beehive Homes franchisor provide assistance in the selection and evaluation of the Location?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 will provide assistance to the franchisee in the selection and evaluation of a location. However, the franchisee is ultimately responsible for selecting and obtaining the location for the Beehive Homes facility and for the construction of the home at that location.
This means that while Beehive Homes offers support during the site selection process, the franchisee has the final say in choosing the location. The franchisee is also responsible for negotiating all agreements and contracts related to the location, as well as any construction or improvements made to it. Beehive Homes requires that the franchisee consult with their own legal counsel and advisors before entering into any agreements related to the location and construction.
Furthermore, the franchise agreement is specific to one location, and any change in the address of the Beehive Homes facility requires prior written agreement from both parties. The franchisor also covenants that no franchise for an additional Beehive Homes, whether franchised or owned by the franchisor, will be sold within the franchisee's territory during the term of the agreement without the franchisee's prior written consent. The territory will be determined and may be modified by the franchisor, encompassing the location and a population of at least 30,000 persons. The franchisee acknowledges that territories may vary in size, population, shape, and other factors, with the franchisor determining these aspects.