Can Beehive Homes modify elements of the System?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Franchisor has developed and holds rights to a unique System (as defined below) for the operation of the Homes. The Franchisor has from time to time revised and updated the System and may continue to revise and update the System.
6.1. Ownership and Use of Modifications and Alterations to Home and System. Franchisee acknowledges and agrees that as among Franchisor and its Affiliates, and Franchisee and its Affiliates, all modifications and alterations to the design of the Home or to the System, whether or not incorporated into the Home or the System and whether made by Franchisor, its Affiliates or Franchisee and its Affiliates, are validly and exclusively owned by Franchisor, and Franchisee has only the nonexclusive right to use such modifications and alterations during the Term of this Agreement.
7.2. Home Design and Specifications. Franchisor will provide general architectural and design drawings, which may include elevations, floor plans and number of beds, as guidelines for the required "trade dress" of the Home. Any variation, alteration or modification of these guidelines shall require the prior written approval of Franchisor. Franchisor will also provide an itemization of all furnishings, equipment and supplies to be used in the operation of the Home.
- 7.3. Signs. Franchisor will provide to Franchisee one standard exterior sign which bears the name "BEE HIVE HOMES®" and which conforms with local requirements as to size and style. Additional signs may be purchased by Franchisee at its sole expense in accordance with specifications furnished by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes as the franchisor has the right to revise and update the System used for operating the Homes. This System includes standards for interior and exterior design, furnishings, and equipment. Any modifications or alterations to the design of the Home or the System, whether made by Beehive Homes or the franchisee, are owned exclusively by Beehive Homes. Franchisees are granted a nonexclusive right to use these modifications and alterations during the term of the Franchise Agreement.
Furthermore, franchisees must obtain prior written approval from Beehive Homes for any variations, alterations, or modifications to the architectural and design guidelines provided by Beehive Homes. This approval is required before submitting final plans for building permits. Beehive Homes also provides a standard exterior sign bearing the name "BEE HIVE HOMES®," and additional signs can be purchased by the franchisee according to Beehive Homes' specifications.
These stipulations ensure that Beehive Homes maintains uniformity and quality across all franchised locations. While franchisees may propose modifications, the ultimate decision-making power rests with Beehive Homes. This protects the brand's reputation and ensures that all locations adhere to the established standards. Prospective franchisees should be aware that they have limited autonomy in altering the System or the design of their Homes without prior approval from Beehive Homes.