Who is responsible for preparing the FDD for Beehive Homes franchises in Texas?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor has entered into a Sub-Franchise Agreement with BHH Homes of Texas, Inc. (the "Sub-Franchisor"), pursuant to which the Sub-Franchisor has the exclusive right to offer and sell Franchises in the State of Texas. The Sub-Franchisor is responsible for the preparation of its own FDD and compliance with all laws applicable to the offer and sale of Franchises.
Source: Item 1 — THE FRANCHISOR, AND ANY PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, BHH Homes of Texas, Inc. is responsible for preparing its own Franchise Disclosure Document (FDD) and ensuring compliance with all laws pertaining to offering and selling franchises in the state of Texas. BHH Homes of Texas, Inc. operates as a sub-franchisor under an agreement with Beehive Homes, Inc., granting them the exclusive right to offer and sell franchises within Texas.
This arrangement means that prospective franchisees in Texas will receive an FDD prepared specifically for that region, potentially containing information tailored to the Texas market and legal requirements. This is different from the standard FDD provided by Beehive Homes, Inc., which applies to other areas. Franchisees should carefully review the Texas-specific FDD to understand the terms and conditions applicable to their franchise.
This sub-franchise structure is not uncommon, especially when a franchisor wants to expand into a new geographic area and partners with a local entity that has specific knowledge of the region. However, it's important for potential franchisees to understand the relationship between Beehive Homes, Inc. and BHH Homes of Texas, Inc., and how it might affect their franchise agreement and ongoing support.