For Beehive Homes, is a separate Franchise Fee required for each additional Home constructed at the Location?
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, constructing additional homes or increasing the number of beds at the location requires the franchisor's prior written approval. Each additional home or increase in the number of beds is subject to a separate Franchise Agreement and Franchise Fee. This means that if a franchisee wants to expand their Beehive Homes business by adding another home at the same location, they will need to sign a new franchise agreement and pay another franchise fee.
The initial franchise fee for the first franchise is $75,000. For franchisees in good standing who want to acquire additional franchises, the franchise fee for each additional franchise is $50,000. However, this fee is subject to change, and the franchisor's approval is still required.
This requirement of a separate franchise fee for each additional Beehive Homes location or expansion is a significant financial consideration for prospective franchisees. It is important to factor in these costs when planning for future growth and expansion of the business. Franchisees should also be aware that the franchisor has the right to change the franchise fee for additional franchises, which could impact the overall cost of expansion.