If I, as a Beehive Homes franchisee, choose to operate the franchise myself, does that exempt me from any other obligations?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1. Home. Franchisee covenants to construct, equip, staff and own one Home, at its own expense, at the Location; to open and commence operation of such Home no later than the date which is three (3) years after the Effective Date of this Agreement and to continuously operate such Home using the System under the Names and Marks, in compliance with this Agreement and the Standards, and in such a manner as to provide courteous, uniform, high quality service to the public, during the Term of this Agreement. Franchisee acknowledges that, although Franchisor provides the
Standards, Franchisee has exclusive day-to-day control of the business and operation of the Home and Franchisor does not in any way possess or exercise such control.
- 8.2.
Compliance With Standards.
Franchisee will comply with the Standards, including Franchisor's specifications for all supplies, products and services.
Franchisor may require Franchisee to purchase particular supplies, products or services meeting certain standards to maintain the common identity and uniqueness of the design, furnishings and appurtenances of the Homes, and Franchisee will comply with such requirements.
Unless Franchisor specifies otherwise, Franchisee may purchase supplies, products and services from any source of distribution which meets the specifications and Standards.
- 8.3.
Compliance With Manual.
Franchisee covenants to adhere to the Standards contained in the Manual.
Portions of the Manual may be state specific, and it is the Franchisee's obligation to identify those portions and to keep them current and up to date.
The Franchisee will not disclose the contents of the Manual to any unauthorized person and upon termination of this Agreement will return all Forms of Manual to Franchisor.
- 8.4.
Compliance with Laws.
Franchisee covenants to comply with all applicable statutes, ordinances, rules and regulations of federal, state and local governments and agencies thereof which in any way regulate or affect the operation of its franchise business and agrees not to engage in any activity or practice which results in violation of any such statutes, ordinances, rules and regulations or which results in or may reasonably be anticipated to result in any public criticism of the Franchisor's System or any part thereof.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 24)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, a franchisee's decision to personally operate the franchise does not exempt them from other obligations. As stated in Item 23, section 8.1, the franchisee is still obligated to construct, equip, staff, and own one Home at their own expense at the approved location. They must open and continuously operate the Home using the Beehive Homes system, names, and marks, adhering to the agreement and standards to provide high-quality service. The franchisee has exclusive day-to-day control of the business, but this does not release them from the contractual obligations to Beehive Homes.
Beehive Homes franchisees must also comply with the standards and specifications for supplies, products, and services to maintain uniformity across the franchise system. They are required to adhere to the standards outlined in the Beehive Homes manual, keeping any state-specific portions current. The franchisee is responsible for not disclosing the manual's contents to unauthorized individuals and returning all forms of the manual upon termination of the agreement.
Furthermore, franchisees must comply with all applicable federal, state, and local laws and regulations affecting their franchise operation. They must avoid any activities that could result in public criticism of the Beehive Homes system. The franchisee's role as an independent contractor also means they are responsible for all taxes related to the business. Therefore, actively managing the franchise does not waive any of these responsibilities.