factual

Who is ultimately responsible for the terms of all contracts related to the construction of a Beehive Homes franchise?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon YOUR request, WE will provide assistance and guidance in negotiating construction, equipment and supply contracts for the construction, furnishing and equipping of the Home.

However, YOU are solely responsible for the terms of all contracts and exercising adequate supervision.

WE do not assist in construction, remodeling or decorating of the site. (paragraph 7.2 of the Franchise Agreement)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 17–21)

What This Means (2025 FDD)

According to Beehive Homes' 2025 Franchise Disclosure Document, while Beehive Homes may provide assistance and guidance in negotiating construction, equipment, and supply contracts for the construction, furnishing, and equipping of the Home, the franchisee is ultimately responsible for the terms of all contracts and exercising adequate supervision. Beehive Homes does not assist in construction, remodeling, or decorating of the site.

This means that while Beehive Homes offers support in the negotiation phase, the franchisee bears the ultimate responsibility for ensuring the contracts are favorable and that the construction is properly supervised. This places a significant burden on the franchisee to possess or acquire the necessary expertise to manage these critical aspects of establishing the Beehive Homes location.

Prospective Beehive Homes franchisees should carefully consider this responsibility and factor in the costs and risks associated with overseeing construction and contract terms. It would be prudent to seek legal and construction expertise to mitigate potential issues and ensure the project aligns with their business goals. Franchisees should also confirm what specific assistance Beehive Homes provides during the negotiation phase and what criteria they use to determine adequate supervision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.