Can people from the area encompassing my Beehive Homes Home become residents of other franchisees' Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement gives YOU the right to construct and operate a Home at the location. You will not receive an exclusive territory. You may face competition from other franchisees. Residents of YOUR Home may come from within or without the area encompassing YOUR Home and persons from the area encompassing YOUR Home may become residents of Homes of other franchisees.
Source: Item 12 — TERRITORY (FDD page 22)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, residents from the area surrounding a franchisee's Beehive Homes location are permitted to become residents of other Beehive Homes franchises. This means that while Beehive Homes grants a location for operation, it does not restrict residents from choosing a different Beehive Homes location, even if it's operated by another franchisee.
This policy has implications for franchisees as it introduces competition among different Beehive Homes locations. Franchisees may need to focus on marketing and providing superior services to attract and retain residents from their surrounding area, as residents are not obligated to choose the closest Beehive Homes. This also means that franchisees aren't limited to only serving people within their immediate area; they can attract residents from a broader geographic region.
While Beehive Homes does offer a protected area with a population of at least 30,000 persons where they will not grant another franchise without written consent, this protection does not guarantee that all residents within that area will choose that specific Beehive Homes location. Franchisees should be prepared to compete with other franchisees and possibly company-owned homes (though the document states Beehive Homes does not own or operate any Homes) for residents.