How is the 'Location' of a Beehive Homes franchise defined in the Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1. Location. Franchisor shall provide assistance to Franchisee in the selection and evaluation of the Location. However, Franchisee is solely responsible for selecting and obtaining the Location for the Home and for construction of the Home at the Location. Franchisee is solely
responsible for the negotiation of all agreements and other contracts relating to the Location and all construction and improvement thereon. Franchisee shall consult with its own legal counsel and other advisors prior to entering into any agreement or contract respecting the Location and any construction or improvement at the Location. It is specifically understood and agreed by and between the parties to this Agreement that the grant of a franchise pursuant to this Agreement is only for the construction of one Home to be located at the Location set forth in Section 3.1 and that there can be no change in the address of the Home without the prior written agreement of the parties to this Agreement.
Franchisor covenants that no franchise for an additional Home, whether franchised or owned by Franchisor, will be sold within the Franchisee's Territory during the Term of this Agreement without the prior written consent of Franchisee. The Territory shall be determined, and may be modified from time to time, by Franchisor and shall consist of a perimeter encompassing the Location and a population of at least 30,000 persons. Franchisee acknowledges and agrees that each territory in which there is a Home may be different from each other territory in terms of size, population, shape and other factors, it being further agreed that the determination of the size, population, shape and other factors regarding the territory shall be established by Franchisor. Franchisee hereby waives any and all claims against Franchisor and all other current and future franchisees regarding the size, population, or other factors differentiating the area encompassing Franchisee's Location from that of other franchisees.
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 selecting and obtaining the location for their Beehive Homes franchise. While Beehive Homes will provide assistance in the selection and evaluation of the location, the franchisee has the ultimate responsibility. This includes the negotiation of all agreements and contracts related to the location, as well as any construction or improvements made at the location. The franchisee is advised to seek legal counsel and other advisors before entering into any agreements related to the location.
The Franchise Agreement specifies that the franchise is granted for the construction of one Beehive Homes facility at the location detailed in Section 3.1 of the agreement. Any change to the address of the Beehive Homes location requires prior written agreement from both parties. Beehive Homes also covenants that no additional franchises, whether franchised or owned by Beehive Homes, will be sold within the franchisee's territory during the term of the agreement without the franchisee's prior written consent.
The territory is determined and may be modified by Beehive Homes, consisting of a perimeter encompassing the location and a population of at least 30,000 people. The franchisee acknowledges that territories may vary in size, population, shape, and other factors, and waives any claims against Beehive Homes or other franchisees regarding these differences. This means a prospective franchisee should carefully consider the location and its surrounding territory, as these factors can significantly impact the success of their Beehive Homes franchise.