For Beehive Homes, who is responsible for construction of the Home at the Location?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
ctly to the provider.
7.1. Location. Franchisor shall provide assistance to Franchisee in the selection and evaluation of the Location. However, Franchisee is solely responsible for selecting and obtaining the Location for the Home and for construction of the Home at the Location. Franchisee is solely
responsible for the negotiation of all agreements and other contracts relating to the Location and all construction and improvement thereon. Franchisee shall consult with its own legal counsel and other advisors prior to entering into any agreement or contract respecting the Location and any construction or improvement at the Location. It is specifically understood and agreed by and between the parties to this Agreement that the grant of a franchise pursuant to this Agreement is only for the construction of one Home to be located at the Location set forth in Section 3.1 and that there can be no change in the address of the Home without the prior written agreement of the parties to this Agreement.
Franchisor covenants that no franchise for an additional Home, whether franchised or owned by Franchisor, will be sold within the Franchisee's Territory during the Term of this Agreement without the prior written consent of Franchisee. The Territory shall be determined, and may be modified from time to time, by Franchisor and shall consist of a perimeter encompassing the Location and a population of at least 30,000 persons. Franchisee acknowledges and agrees that each territory in which there is a Home may be different from each other territory in terms of size, population, shape and other factors, it being further agreed that the determination of the size, population, shape and other factors regarding the territory shall be established by Franchisor. Franchisee hereby waives any and all claims against Franchisor and all other current and future franchisees regarding the size, population, or other factors differentiating the area encompassing Franchisee's Location from that of other franchisees.
7.2. Home Design and Specifications. Franchisor will provide general architectural and design drawings, which may include elevations, floor plans and number of beds, as guidelines for the required "trade dress" of the Home. Any variation, alteration or modification of these guidelines shall require the prior written approval of Franchisor. Franchisor will also provide an itemization of all furnishings, equipment and supplies to be used in the operation of the Home. Additional Homes or any increase in the number of beds may be constructed at the Location but only with Franchisor's prior written approval and provided that each additional Home or increase in the number of beds is subject to a separate Franchise Agreement and Franchise Fee.
Franchisee, at its sole expense, shall be responsible to engage its own architect, attorneys, contractors, general and subs, and other advisors to prepare final plans, construct the improvements and obtain all required permits and licensing. Final plans must be approved in writing by the Franchisor for compliance with "trade dress" guidelines prior to submission for building permits. Franchisor shall not be obligated to become a party to, and will have no liability whatsoever in connection with, anyagreements pertaining to the construction, furnishing, equipping and supplying of the Home.
- 7.3. Signs. Franchisor will provide to Franchisee one standard exterior sign which bears the name "BEE HIVE HOMES®" and which conforms with local requirements as to size and style. Additional signs may be purchased by Franchisee at its sole expense in accordance with specifications furnished by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is solely responsible for the construction of the Home at the Location. While Beehive Homes will provide assistance to the franchisee in the selection and evaluation of the location, the franchisee is responsible for selecting and obtaining the location. This includes negotiating all agreements and contracts related to the location, as well as any construction or improvements made on the property.
Specifically, the franchisee is required to engage their own architect, attorneys, contractors, and other advisors to prepare final plans, construct the improvements, and obtain all necessary permits and licensing. These final plans must be approved in writing by Beehive Homes to ensure compliance with their trade dress guidelines before the franchisee submits them for building permits.
Beehive Homes explicitly states that they will not be a party to, nor have any liability in connection with, any agreements pertaining to the construction, furnishing, equipping, and supplying of the Home. This means the franchisee bears all responsibility for managing and financing the construction process, ensuring compliance with local regulations, and resolving any issues that may arise during construction. This is a common arrangement in franchising, where the franchisee typically handles the build-out while adhering to the franchisor's brand standards.