For Beehive Homes, is the grant of a franchise limited to the construction of one Home at the specified Location?
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.
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the grant of a franchise is generally limited to the construction of one Beehive Homes location. The franchisee is responsible for selecting and obtaining the location for the Home and for its construction. The franchisee must also negotiate all agreements and contracts related to the location and construction. The FDD specifies that the franchise is granted only for the construction of one Home at the location specified in the agreement. Any change in the address of the Home requires prior written agreement from both parties.
However, the Beehive Homes FDD does state that additional Homes or an 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.
This means that while the initial franchise agreement covers a single location, franchisees may have the opportunity to expand at the same location with additional agreements and fees. This could be beneficial for franchisees who want to grow their business in a familiar territory, but it also means additional costs and approvals are required for each expansion.