Who is responsible for negotiating agreements related to the location and construction of a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the franchisee is solely responsible for negotiating all agreements and contracts related to the location and construction of their Beehive Homes facility. While Beehive Homes provides assistance in the selection and evaluation of the location, the franchisee holds the ultimate responsibility. This includes selecting and obtaining the location, as well as overseeing the construction of the home.
This means that prospective Beehive Homes franchisees need to be prepared to manage the entire negotiation process for land acquisition, construction contracts, and any other related agreements. It is crucial for franchisees to consult with their own legal counsel and advisors before entering into any agreements related to the location and construction. This ensures they fully understand the terms and conditions and protect their interests.
Beehive Homes provides general architectural and design drawings to guide the franchisee in maintaining the required trade dress. However, the franchisee is responsible for engaging their own architect, attorneys, contractors, and other advisors to prepare final plans, construct the improvements, and obtain all necessary permits and licensing. The final plans must be approved in writing by Beehive Homes to ensure compliance with trade dress guidelines before submission for building permits.
Beehive Homes is not obligated to become a party to, and will have no liability in connection with, any agreements pertaining to the construction, furnishing, equipping, and supplying of the Home. This underscores the importance of the franchisee's due diligence and careful management of all aspects of the location and construction process. Franchisees should ensure they have adequate expertise or seek professional assistance to navigate these responsibilities effectively.