Are the initial investment figures based on Beehive Homes' experience with existing Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) This is an estimate of YOUR additional working capital needed to cover expenses not otherwise specifically identified in this table and payroll costs during the first six months of operations. These estimates are based on the Franchisor's experience with over 200 active franchises. These amounts include such things as additional expenses for shipping of furniture and fixtures, legal costs, insurance, licenses, security deposits, utility hook up costs and the like. The costs vary widely from city to city and from state to state. YOUR costs will depend on factors such as: how much YOU follow the approved methods and procedures; YOUR management skill, experience and acumen; local economic conditions; local demographics; wage rates and competition.
- (9) These figures are based upon OUR experience with existing Homes. However, YOU should review these figures carefully with a business advisor before making any decision to purchase the franchise. WE do not offer financing to franchisees for any of these items. As noted above, these costs do not include land costs.
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 estimated initial investment figures are based on their experience with existing Homes. Specifically, the additional working capital needed to cover expenses and payroll costs during the first six months of operations is based on Beehive Homes' experience with over 200 active franchises. These costs include expenses for shipping furniture and fixtures, legal costs, insurance, licenses, security deposits, and utility hook-up costs.
Beehive Homes notes that these costs can vary significantly depending on factors such as adherence to approved methods, management skill, local economic conditions, demographics, wage rates, and competition. The FDD advises prospective franchisees to carefully review these figures with a business advisor before making any decision to purchase the franchise.
It is important to note that these figures do not include land costs, and Beehive Homes does not offer financing to franchisees for any of these items. The initial investment ranges from $3,400,000 to $5,100,000, encompassing various expenditures such as the initial franchise fee ($75,000), building costs ($2,875,000 to $4,500,000), furniture, fixtures and equipment ($120,000 to $150,000), and additional funds for employees for 6 months ($160,900 to $186,600).