Does Beehive Homes require franchisees to purchase or lease goods from them or approved suppliers?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU have no obligation to purchase or lease goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the franchised business either from US, OUR designee, or suppliers approved by US.
For certain items of furniture, fixtures and equipment, and supplies and materials, WE may provide you with specifications which may include minimum standards for performance, warranties, design, appearance and other restrictions. YOU may purchase items which meet specifications from any source. Specifications are provided to YOU after signing the Franchise Agreement and are found in OUR Owner/Operator Training Outline. WE currently do not
maintain a list of approved suppliers and do not maintain criteria for approving suppliers of the items listed in this paragraph. Any supplier which is able to provide these items meeting OUR specifications is, in effect, an approved supplier. YOU may determine which suppliers meet OUR specifications without OUR prior approval. However, any determination by YOU is subject to OUR review.
All advertising used by YOU must be approved in advance by US for conformity with the trade dress standards of Bee Hive Homes.
There is no obligation for YOU, under the terms of the Franchise Agreement or any other device or practice, to purchase or lease any other goods, services or real estate for the Home or operation of the franchise business from US or any of OUR affiliates. Neither WE nor OUR affiliates are approved suppliers. None of OUR officers owns an interest in any supplier. WE do not have any arrangements providing for income to US resulting from purchases made from third parties. WE do not provide any material benefits to franchisees for purchasing products and services from designated suppliers.
WE do not make available to YOU any purchasing or distribution cooperative nor have WE negotiated any special pricing arrangements with suppliers for the benefit of franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are generally not required to purchase or lease goods, services, or supplies from Beehive Homes, its designees, or approved suppliers. However, franchisees are required to build their Beehive Homes according to the franchisor's architectural and design specifications. These specifications are provided after the Franchise Agreement is signed and are influenced by the trade dress and uniformity standards of the franchise, as well as the specific location chosen by the franchisee.
For certain furniture, fixtures, equipment, supplies, and materials, Beehive Homes may provide franchisees with specifications that include minimum standards for performance, warranties, design, appearance, and other restrictions. Franchisees can purchase items meeting these specifications from any source. While Beehive Homes does not maintain a list of approved suppliers or criteria for approving suppliers, any supplier that meets their specifications is effectively considered approved. Franchisees can determine which suppliers meet the specifications without prior approval from Beehive Homes, but the franchisor retains the right to review these determinations.
All advertising materials used by franchisees must be approved in advance by Beehive Homes to ensure conformity with the brand's trade dress standards. There is no obligation for franchisees to purchase or lease any other goods, services, or real estate from Beehive Homes or its affiliates. Neither Beehive Homes nor its affiliates are approved suppliers, and none of the franchisor's officers owns an interest in any supplier. Beehive Homes does not receive income from franchisee purchases from third parties and does not provide material benefits for franchisees who purchase from designated suppliers. Beehive Homes also does not offer purchasing or distribution cooperatives or negotiate special pricing arrangements with suppliers for the benefit of franchisees.