What happens if a Beehive Homes franchisee's supplier determination is not approved by Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
For certain items of furniture, fixtures and equipment, and supplies and materials, WE may provide you with specifications which may include minimum standards for performance, warranties, design, appearance and other restrictions. YOU may purchase items which meet specifications from any source. Specifications are provided to YOU after signing the Franchise Agreement and are found in OUR Owner/Operator Training Outline. WE currently do not
maintain a list of approved suppliers and do not maintain criteria for approving suppliers of the items listed in this paragraph. Any supplier which is able to provide these items meeting OUR specifications is, in effect, an approved supplier. YOU may determine which suppliers meet OUR specifications without OUR prior approval. However, any determination by YOU is subject to OUR review.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are allowed to select their own suppliers for certain items of furniture, fixtures, equipment, supplies, and materials, provided those suppliers meet Beehive Homes' specifications. These specifications may include minimum standards for performance, warranties, design, and appearance. While Beehive Homes does not maintain a list of approved suppliers or specific criteria for approval, any supplier that meets their specifications is effectively considered approved.
Importantly, the franchisee's determination of whether a supplier meets Beehive Homes' standards is subject to review by Beehive Homes. The FDD does not explicitly state the consequences if Beehive Homes disapproves a franchisee's supplier determination. However, it can be inferred that the franchisee would need to find an alternative supplier that meets Beehive Homes' specifications and gains their approval.
This process highlights the importance of understanding Beehive Homes' specifications and maintaining open communication with the franchisor regarding supplier choices. Prospective franchisees should clarify with Beehive Homes the specific steps involved in the supplier approval process and the potential ramifications of a rejected supplier determination to avoid potential delays or increased costs in setting up their Beehive Homes location.