For Beehive Homes, who is responsible for selecting and obtaining the location for the Home?
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' 2025 Franchise Disclosure Document, the franchisee is ultimately responsible for selecting and securing the location for their Beehive Homes facility. While Beehive Homes provides assistance in the selection and evaluation of potential locations, the final decision and the responsibility for obtaining the location rests solely with the franchisee.
This means that prospective Beehive Homes franchisees need to conduct thorough due diligence when choosing a site. This includes evaluating factors such as local demographics, accessibility, competition, and zoning regulations. Franchisees are also responsible for negotiating all agreements and contracts related to the location, including leases or purchase agreements.
Beehive Homes requires franchisees to consult with their own legal counsel and other advisors before entering into any location-related agreements. This underscores the importance of seeking professional guidance to ensure that the franchisee understands the terms and conditions of these agreements and to protect their interests. The FDD also states that the grant of a franchise is only for the construction of one Home 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.
While Beehive Homes offers assistance in the site selection process, the franchisee bears the ultimate responsibility and risk associated with the location. This is a common arrangement in franchising, as it allows the franchisee to leverage their local knowledge and expertise in choosing a site that is well-suited to their specific market and business goals.