To whom is payment made for supplies and materials inventory 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 permi |
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 payment for the initial stores of supplies, materials, and inventory is made to Third Party Suppliers. This inventory, estimated between $25,000 and $30,000, includes items like office equipment, first aid supplies, and cleaning supplies necessary to start the Beehive Homes franchise. The payment is required in a lump sum prior to opening the franchise location.
This means that a new Beehive Homes franchisee will need to budget for these startup costs and ensure payment is made to the appropriate third-party vendors before the location can begin operations. It's important for prospective franchisees to understand that these costs are in addition to other initial investments such as the franchise fee, building costs, furniture, fixtures, equipment, and other professional fees.
Franchisees should carefully vet and select their third-party suppliers to ensure they receive quality products and competitive pricing. Maintaining good relationships with these suppliers will be crucial for the ongoing operation of the Beehive Homes business. The FDD also states that Beehive Homes does not offer financing to franchisees for any of these items, so franchisees must secure their own funding.