What is the high estimate for total initial investment for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | High | Low | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee | $75,000 (1) | $75,000 | Lump Sum | One-third (1/3) upon signing and balance upon earlier of financing or permitting | US |
| Building | $4,500,000 (2) | $2,875,000 (2) | As Incurred (2) | As Incurred (2) | Third Party Lenders and Contractors (2) |
| Furniture, Fixtures and Equipment (3) | $150,000 | $120,000 | Lump Sum | Prior to Opening | Third Party Suppliers |
| Supplies and Materials Inventory (4) | $30,000 | $25,000 | Lump Sum | Prior to Opening | Third Party Suppliers |
| Travel, Meals and Lodging for Training | $10,000 | $8,500 | As Incurred | As Incurred | Airlines, Hotels, Restaurants |
| Insurance (5) | $15,600 | $13,600 | As Incurred | Monthly | Third Party Insurers |
| Architectural | $44,000 | $40,000 | As | As Incurred | Third Party |
| Fees | Incurred | Suppliers | |||
| Engineering | $48,400 | $44,000 | As | As Incurred | Third Party |
| Fees | Incurred | Suppliers | |||
| Healthcare Licensing and Certifications | $22,000 | $20,700 | As Incurred | As Incurred | Third Party Suppliers |
| Other Professional Fees (6) | $3,200 | $2,800 | As Incurred | As Incurred | Third Party Suppliers |
| Utilities (7) | $5,200 | $5,000 | As Incurred | As Incurred | Third Party Suppliers |
| Miscellaneous | $10,000 | $9,500 | Lump | Prior to Opening | Third Party |
| Opening Costs | Sum | Suppliers | |||
| Additional Funds - Employees and 6 months (8) | $186,600 | $160,900 | As Incurred | As Incurred | Third Party Suppliers |
| Totals (9) | $5,100,000 | $3,400,000 |
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the high estimate for the total initial investment to open a franchise is $5,100,000. This total includes several key expenditures, with the most significant being the building costs, estimated at $4,500,000. Other notable expenses include the initial franchise fee of $75,000, furniture, fixtures, and equipment costing $150,000, and an allocation of $186,600 for additional funds to cover employee costs and other expenses during the first six months of operation.
Prospective Beehive Homes franchisees should be aware that these figures do not include the cost of the land. The FDD explicitly states that land costs can vary widely, and therefore, are not included in the estimated initial investment. This omission is significant because land acquisition can substantially increase the overall investment required to establish a Beehive Homes franchise. The document advises potential franchisees to carefully review these figures with a business advisor before making any decision to purchase the franchise.
It is also important to note that Beehive Homes does not offer financing to franchisees for any of these initial investment items. Franchisees will need to secure their own funding through third-party lenders or other sources. The estimated costs for items such as insurance ($15,600), architectural fees ($44,000), engineering fees ($48,400), and healthcare licensing and certifications ($22,000) are also part of the total, highlighting the diverse range of expenses involved in starting a Beehive Homes franchise. Understanding these costs is crucial for planning and securing adequate financing.
In summary, the initial investment for a Beehive Homes franchise is substantial, with the high-end estimate reaching $5,100,000, excluding land costs. This investment covers a wide array of expenses, from construction and franchise fees to furniture, equipment, and initial operating capital. Potential franchisees should conduct thorough due diligence, consult with financial advisors, and carefully consider all associated costs, including land acquisition, to ensure they are adequately prepared for the financial commitment involved.