What is the relationship between Beehive Homes Franchisor and Franchisee?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.1. Independent Contractors. Franchisor and Franchisee have the relationship of owner and independent contractor and are not and shall not be considered as joint venturers, partners, employees, servants or agents of each other, and neither shall have the power to bind or obligate the other except as set forth in this Agreement. Franchisee shall conspicuously identify itself in all dealings with customers, suppliers, public officials, employees and others as the owner of the Home under a franchise granted by Franchisor and shall place such notices of independent ownership on such forms, business cards, stationery and advertising and other materials as Franchisor may require from time to time. Franchisee agrees to include in all agreements and contracts a statement that each "franchise is independently owned and operated."
- 17.2. No Liability for Acts of Other Party. Franchisee agrees not to employ any of the Names and Marks in signing any contract or applying for any license or permit, or in a manner that may result in Franchisor's liability for any of Franchisee's indebtedness or obligations, and that Franchisee will not use the Names and Marks in any way that has not been expressly authorized. Neither Franchisor nor Franchisee will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that their respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing. Franchisor will be obligated for any damages to any person or property directly or indirectly arising out of the operation of the Home or the business Franchisee conducts pursuant to this Agreement.
- 17.3. Taxes. Neither Franchisor nor its Affiliates will have any liability for any sales, use, service, occupation, excise, gross receipts, income, property or other taxes, whether levied upon Franchisee or the Home, in connection with the business Franchisee conducts. Payment of all such taxes are Franchisee's sole responsibility.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the relationship between Beehive Homes and its franchisees is that of an owner and independent contractor. This means that franchisees are not considered joint venturers, partners, employees, servants, or agents of Beehive Homes. Neither party has the power to bind or obligate the other, except as explicitly stated in the Franchise Agreement. Franchisees must clearly identify themselves as the owners of their Beehive Homes franchise, operating under a franchise granted by Beehive Homes, in all dealings with customers, suppliers, public officials, and employees. Franchisees must also include a statement in all agreements and contracts indicating that each franchise is independently owned and operated.
Beehive Homes is not liable for any of the franchisee's debts, obligations, or any express or implied agreements, warranties, guarantees, or representations made by the franchisee unless expressly authorized in writing. Similarly, the franchisee cannot use the Beehive Homes' Names and Marks in any manner that has not been expressly authorized or that may result in Beehive Homes' liability. Beehive Homes is also not obligated for any damages to any person or property arising directly or indirectly from the operation of the franchisee's Home or business.
Furthermore, Beehive Homes and its affiliates bear no responsibility for any taxes, including sales, use, service, income, or property taxes, levied upon the franchisee or the Home. The franchisee is solely responsible for the payment of all such taxes. This independent contractor relationship is a common structure in franchising, where the franchisee operates their business with a degree of autonomy while adhering to the franchisor's system and standards.