Does Beehive Homes offer assistance with the financing process for franchisees?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
13.7. Mortgages and Pledges to Lending Institutions.
- (a) Franchisee may mortgage or pledge the Home or an Equity Interest therein to a lender to finance the acquisition or construction of the Home, without notifying Franchisor or obtaining its consent, provided that: (i) Franchisee or the applicable Equity Owner is the sole borrower; (ii) the loan is not secured by any other Home or other collateral; and (iii) the loan does not provide more than 6 months of operating capital.
- (b) Franchisee and/or its Equity Owner(s) must notify Franchisor, in writing, before creating any additional lien or encumbrance, beyond that permitted under Section 13.7(a), on the Home or an Equity Interest therein, or making a collateral assignment of this Agreement and shall not create such lien or encumbrance without the prior written approval of Franchisor. Such approval may be based upon, among other factors, Franchisor's evaluation of the structure of the financing to determine which, if any, special agreements and/or assurances for the lender, the Franchisee and/or its Equity Owner(s) will be required of Franchisor, including a "lender comfort letter" or a loan related guaranty, in a form satisfactory to Franchisor. Franchisor may charge a fee for its review of a proposed mortgage or pledge and for the processing of a lender comfort letter.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees may obtain financing to acquire or construct a Beehive Homes location. Specifically, Section 13.7(a) states that a franchisee can mortgage or pledge the Home or an Equity Interest to a lender to finance the acquisition or construction of the Home without notifying Beehive Homes or obtaining its consent, provided that the franchisee is the sole borrower, the loan is not secured by any other Home or collateral, and the loan does not provide more than 6 months of operating capital.
However, Section 13.7(b) indicates that if a franchisee wants to create any additional lien or encumbrance beyond what is permitted in Section 13.7(a) on the Home or an Equity Interest, they must notify Beehive Homes in writing and obtain prior written approval from Beehive Homes. This approval may be based on Beehive Homes' evaluation of the financing structure, which may require special agreements or assurances for the lender, the franchisee, and/or its Equity Owner(s), including a "lender comfort letter" or a loan-related guaranty. Beehive Homes may charge a fee for reviewing a proposed mortgage or pledge and for processing a lender comfort letter.
In summary, while Beehive Homes does not directly offer financing, they do allow franchisees to seek financing from lending institutions under certain conditions. They also may provide a lender comfort letter or loan-related guaranty, for a fee, if the financing structure requires it and meets their approval. A prospective franchisee should discuss these financing options and requirements with Beehive Homes to fully understand the process and potential costs.