If the Beehive Homes franchisee is responsible for the cost of an inspection, how must they pay?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
or from time to time.
- 11.5. Maintenance. The Franchisee shall at all times maintain the interior and exterior of the Home and the surrounding premises used in connection with said business in the highest degree of cleanliness, orderliness, sanitation and repair, in accordance with Franchisor's Standards. At the expiration of seventy-two (72) hours notice by Franchisor to the Franchisee setting forth the failure of the Franchisee to abide by the terms of this Section, if the Franchisee has not cured said default, Franchisor, without being guilty of any manner of trespass, negligence or fault, and without prejudice to any of the remedies available to Franchisor, may enter the Home and, at a cost to be paid by the Franchisee, shall, in the reasonable determination of Franchisor, correct whatever
situation is necessary so that the Home and the surrounding premises are operated in the highest degree of cleanliness, orderliness, sanitation and repair required by the Standards of Franchisor.
- 11.6. Repairs. The Franchisee shall repair, alter and paint the exterior and interior of the Home at its own expense at reasonable times or as reasonably directed by Franchisor, and in accordance with Franchisor's Standards.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is responsible for certain costs associated with inspections and training. Specifically, if the franchisee fails to maintain the standards of cleanliness, orderliness, sanitation, and repair, and does not correct the failure within 72 hours of notice from Beehive Homes, Beehive Homes may enter the premises to correct the issues. The franchisee is then responsible for paying the costs incurred by Beehive Homes to rectify these issues.
Additionally, if Beehive Homes provides training for successor resident managers at the franchisee's request, the franchisee must pay Beehive Homes a minimum of $300 per day, plus cover the costs of meals, lodging, and round trip air transportation for Beehive Homes' training personnel. Furthermore, if the franchisee or their resident manager does not complete the required training program to Beehive Homes' satisfaction, Beehive Homes may send additional personnel to train the staff at the Home. In this case, the franchisee will bear all costs, including salaries, lodging, meals, and round trip transportation for the additional personnel, until Beehive Homes deems the staff capable of operating the Home.
These stipulations highlight the franchisee's financial responsibility for maintaining standards and ensuring adequate training. It is important for prospective franchisees to understand these potential costs and factor them into their financial planning. The franchisee should clarify with Beehive Homes the specific circumstances under which these costs may be incurred and the expected range of expenses to budget accordingly.