Are there any exceptions to the restriction on Beehive Homes granting another franchise within my protected territory?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU will be granted a location by the Franchise Agreement. This location will be the address of your Home. YOU will construct and operate a single Home at the location. The location of YOUR Home is subject to OUR approval. WE will not grant another franchise using the Bee Hive Homes mark or any other mark or operate a company owned Home using the Bee Hive Homes mark or any other mark within a contiguous geographical area the perimeter of which contains YOUR location and which is of sufficient size to include a population of at least 30,000 persons, without YOUR prior written consent. This area need not be circular in shape with a fixed radius, but rather will be created consistent with the geographic and demographic characteristics surrounding YOUR location.
The Franchise Agreement gives YOU the right to construct and operate a Home at the location. You will not receive an exclusive territory. You may face competition from other franchisees. Residents of YOUR Home may come from within or without the area encompassing YOUR Home and persons from the area encompassing YOUR Home may become residents of Homes of other franchisees.
Source: Item 12 — TERRITORY (FDD page 22)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, while you are granted a location for your Beehive Homes franchise, you do not receive an exclusive territory. Beehive Homes commits not to grant another franchise or operate a company-owned home within a contiguous geographical area that includes your location and a population of at least 30,000 people without your prior written consent. This area's shape will be determined by the geographic and demographic characteristics surrounding your location.
However, the FDD specifies that you may face competition from other franchisees. Residents of your Beehive Homes location may come from inside or outside your designated area, and people from your area may become residents of other franchisees' homes. This means that while Beehive Homes will not establish another franchise within your protected area (30,000 population), there is no restriction on residents from your area choosing to reside in a Beehive Homes location outside of your protected territory.
This lack of an exclusive territory is a common arrangement in the franchise industry. Prospective Beehive Homes franchisees should be aware that while they have some territorial protection, they may still face competition from other franchisees and are encouraged to solicit residents from outside their immediate area. Understanding the demographic and geographic characteristics of your chosen location is crucial, as the shape and scope of your protected area will be defined by these factors.