If a Beehive Homes franchisee is responsible for the cost of an inspection, when must they reimburse the franchisor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee is responsible for covering the costs of certain actions taken by the franchisor related to the upkeep and standards of the Beehive Homes location. Specifically, if the franchisee fails to maintain the interior and exterior of the Home to Beehive Homes' standards, and does not correct this failure within 72 hours of receiving notice from Beehive Homes, the franchisor may enter the Home to correct the issues. The franchisee is then responsible for paying the costs incurred by Beehive Homes to rectify these maintenance issues.
This means that a Beehive Homes franchisee must promptly reimburse the franchisor for any expenses incurred by the franchisor to correct maintenance defaults at the franchisee's location, provided the franchisee has been given a 72-hour notice to remedy the situation themselves. This reimbursement would cover costs that Beehive Homes deems reasonably necessary to bring the location up to the required standards of cleanliness, orderliness, sanitation, and repair.
This clause ensures that all Beehive Homes locations maintain a consistent level of quality and appearance, protecting the brand's reputation. It also places a direct financial responsibility on the franchisee to proactively manage and maintain their location, as neglect can lead to the franchisor stepping in and charging the franchisee for the necessary repairs and maintenance.