What should a prospective Beehive Homes franchisee understand about relying on the franchisor's financial figures?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
TIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if:
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- A franchisor provides the actual records of an existing outlet you are considering buying; or
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- A franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
In 2022, 25% (26) of the reporting BeeHive Homes franchises reported annual revenues of at least $950,000; and 48% (50) of the reporting BeeHive Homes franchises reported annual revenues of at least $700,000.
In 2023, 26% (28) of the reporting BeeHive Homes franchises reported annual revenues of at least $950,000; and 63% (67) of the reporting BeeHive Homes franchises reported annual revenues of at least $700,000.
The foregoing represents actual performance of the reportingBeeHive Homes, but makes no representation regarding the non-reporting BeeHive Homes. There is no assurance that the performance of the not-reporting BeeHive Homes will be the same of similar to the performance
of the reporting BeeHive Homes. Some franchises have sold this amount. There is no assurance you'll do as well. If you rely upon our figures, you must accept the risk of not doing as well.
Bases
These revenue figures are derived from the actual historical performance of BeeHive Homes franchises across various locations in the United States. These revenue figures were reported for the calendar years 2022 and 2023.
At December 31, 2022 there were 198 BeeHive Homes franchises in the BeeHive Homes system. We solicited revenue numbers from each of these franchise Homes and received responses from 104 franchisees. Of the 104 responses, 26 owners reported revenues of $950,000 or more, which is 25% of the responding BeeHive Homes franchises. Of the 104 responses, the average reported revenues were $741,000, with a high of $1,843,000 and a low of $174,000.
At December 31, 2023 there were 198 BeeHive Homes franchises in the BeeHive Homes system. We solicited revenue numbers from each of these franchise Homes and received responses from 106 franchisees. Of the 106 responses, 28 owners reported revenues of$950,000 or more, which is 26% of the responding BeeHive Homes franchises. Of the 106 responses, the average reported revenues were $843,000, with a high of $1,941,000 and a low of $216,000.
Assumptions
Our data measured BeeHive Homes franchisees' revenues based on the 104 responding franchises for 2022 and the 106 responding franchises for 2023. The location at which your BeeHive Homes franchise will be, however, may be in a smaller or larger urban or suburban area. Accordingly, the results achieved by the reporting franchises may not be typical for those in your proposed area. Further, each of the franchises reporting revenue data has been in business for at least two years.
A new franchisee's individual financial results may differ from the results stated in this financial performance representation.
Written substantiation for these financial performance representations will be made available to the prospective franchisee upon reasonabl
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 27–28)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, prospective franchisees should exercise caution when relying on the franchisor's financial performance representations. The FDD indicates that the provided revenue figures are derived from the actual historical performance of Beehive Homes franchises across various locations in the United States for the calendar years 2022 and 2023. However, these figures are based on a subset of franchisees who responded to the franchisor's request for revenue data; 104 out of 198 in 2022 and 106 out of 198 in 2023. The financial performance of the non-reporting Beehive Homes is not represented, and there is no assurance that their performance will be the same or similar to the reporting homes. Therefore, a franchisee must accept the risk of not performing as well if they rely on these figures.
Furthermore, the FDD highlights that the location of a new Beehive Homes franchise may be in an area with different characteristics (smaller or larger urban or suburban area) compared to the locations of the franchises that reported revenue data. This means that the results achieved by the reporting franchises may not be typical for a new franchisee's proposed area. Additionally, all franchises reporting revenue data have been in business for at least two years, implying that a new franchisee's financial results may differ, especially during the initial years of operation.
In 2022, 25% of the 104 reporting Beehive Homes franchises reported annual revenues of at least $950,000, and 48% reported at least $700,000. The average reported revenues were $741,000, with a high of $1,843,000 and a low of $174,000. In 2023, 26% of the 106 reporting Beehive Homes franchises reported annual revenues of at least $950,000, and 63% reported at least $700,000. The average reported revenues were $843,000, with a high of $1,941,000 and a low of $216,000. The FDD emphasizes that there is no assurance a new franchisee will do as well as these figures suggest, and the franchisee must accept the risk of not doing as well if they rely upon these figures. Prospective franchisees should also note that written substantiation for these financial performance representations will be made available upon reasonable request.