What is the low estimate for total initial investment for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | High | Low | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee | $75,000 (1) | $75,000 | Lump Sum | One-third (1/3) upon signing and balance upon earlier of financing or permitting | US |
| Building | $4,500,000 (2) | $2,875,000 (2) | As Incurred (2) | As Incurred (2) | Third Party Lenders and Contractors (2) |
| Furniture, Fixtures and Equipment (3) | $150,000 | $120,000 | Lump Sum | Prior to Opening | Third Party Suppliers |
| Supplies and Materials Inventory (4) | $30,000 | $25,000 | Lump Sum | Prior to Opening | Third Party Suppliers |
| Travel, Meals and Lodging for Training | $10,000 | $8,500 | As Incurred | As Incurred | Airlines, Hotels, Restaurants |
| Insurance (5) | $15,600 | $13,600 | As Incurred | Monthly | Third Party Insurers |
| Architectural | $44,000 | $40,000 | As | As Incurred | Third Party |
| Fees | Incurred | Suppliers | |||
| Engineering | $48,400 | $44,000 | As | As Incurred | Third Party |
| Fees | Incurred | Suppliers | |||
| Healthcare Licensing and Certifications | $22,000 | $20,700 | As Incurred | As Incurred | Third Party Suppliers |
| Other Professional Fees (6) | $3,200 | $2,800 | As Incurred | As Incurred | Third Party Suppliers |
| Utilities (7) | $5,200 | $5,000 | As Incurred | As Incurred | Third Party Suppliers |
| Miscellaneous | $10,000 | $9,500 | Lump | Prior to Opening | Third Party |
| Opening Costs | Sum | Suppliers | |||
| Additional Funds - Employees and 6 months (8) | $186,600 | $160,900 | As Incurred | As Incurred | Third Party Suppliers |
| Totals (9) | $5,100,000 | $3,400,000 |
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 total initial investment to open a franchise ranges from $3,400,000 to $5,100,000. This total includes several key expenditures. The initial franchise fee is $75,000, which is paid in two installments: one-third upon signing the agreement and the balance upon securing financing or permits. A significant portion of the investment is allocated to building costs, estimated between $2,875,000 and $4,500,000, which are paid as incurred to third-party lenders and contractors. Note that these costs do not include the price of the land itself.
Additional costs include furniture, fixtures, and equipment, estimated between $120,000 and $150,000, and initial supplies and materials inventory, ranging from $25,000 to $30,000. Franchisees should also budget for travel, meals, and lodging for training, estimated at $8,500 to $10,000. Insurance costs for the first six months are projected to be between $13,600 and $15,600. Architectural and engineering fees range from $40,000 to $44,000 and $44,000 to $48,400, respectively. Healthcare licensing and certifications are estimated to cost between $20,700 and $22,000.
Other professional fees, such as accounting and legal fees for the first six months, are estimated at $2,800 to $3,200. Utility costs for the first six months are projected to be between $5,000 and $5,200. Miscellaneous opening costs range from $9,500 to $10,000. Furthermore, Beehive Homes estimates that franchisees will need additional funds of $160,900 to $186,600 to cover employee costs and other expenses during the first six months of operation. These figures are based on Beehive Homes' experience with existing homes, but the actual costs can vary significantly based on factors such as management skill, local economic conditions, and wage rates.