What rights does a Beehive Homes franchisee have regarding modifications and alterations to the Home or System?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 7.4. Training. Franchisor will provide training, prior to opening of the Home for business, in the various practices, policies and procedures for operation of the Home. Franchisee, and if there is more than one Franchisee at least one of the Franchisees, and the resident manager are required to complete a training program of up to three (3) days duration at a location(s) designated by Franchisor, which may include the corporate office and/or an operating Franchise.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees have limited rights regarding modifications and alterations to the Home or System. While Beehive Homes provides general architectural and design drawings as guidelines, any variation, alteration, or modification of these guidelines requires prior written approval from Beehive Homes. This ensures that the "trade dress" of each Home remains consistent with the brand's standards.
Although franchisees are responsible for engaging their own architects and contractors to prepare final plans and obtain necessary permits, these final plans must also receive written approval from Beehive Homes before submission for building permits. This requirement allows Beehive Homes to maintain uniformity across all franchised locations and protect its brand identity. Franchisees bear the expense of these modifications.
Beehive Homes retains exclusive ownership of all modifications and alterations to the design of the Home or the System, regardless of who makes them. Franchisees only have a nonexclusive right to use these modifications and alterations during the term of the Franchise Agreement. This means that even if a franchisee develops a beneficial modification, Beehive Homes owns it, and the franchisee can only use it while they are operating under the franchise agreement.