What right does Beehive Homes have regarding the franchisee's books and records?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
WE have the right to examine YOUR books and records. If this examination reveals a discrepancy of two percent (2%) or more, then YOU will reimburse US for the cost of the examination.
- (3) Additional Training by US. The initial franchise fee covers the cost of training YOU and YOUR resident manager. This training takes place at a location designated by US. The cost of round trip travel for YOU is borne by US. The cost of YOUR meals and lodging, as well as the travel, meals and lodging for YOUR resident manager, is borne by YOU.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, Beehive Homes has specific rights to examine a franchisee's financial records. Beehive Homes retains the right to examine a franchisee's books and records. If an examination reveals a discrepancy of two percent or more in reported gross revenues, the franchisee is responsible for reimbursing Beehive Homes for the cost of the examination.
Additionally, Beehive Homes has the right to audit the financial reports and information that franchisees are required to submit according to the Franchise Agreement. While Beehive Homes will bear the expense of these audits, if an audit uncovers an understatement of 2% or more in the franchise's gross revenues for any period, the franchisee must reimburse Beehive Homes for the audit costs.
These provisions are fairly standard in franchising, as franchisors need to ensure accurate royalty payments and maintain the integrity of the brand. Prospective Beehive Homes franchisees should maintain meticulous financial records and ensure accurate reporting to avoid potential audit costs and penalties.