Risk Score
Pending analysis
Investment Range
$3,400,000 - $5,100,000
Franchise Fee
$50,000
Total US Locations
199
Business Summary
Bee Hive Homes operates facilities that provide assisted living and residential care services to elderly persons who do not require skilled nursing care. These facilities, known as Homes, are typically ranch-style buildings with 15 to 24 bedrooms, located within residential neighborhoods. Bee Hive Homes provides residents with meals, assistance with daily living activities, and opportunities for social engagement. The business focuses on creating a group living environment for its residents and does not offer medical services.
Corporate History
The Bee Hive Homes business, providing assisted living and residential care, began in September 1987 with Bee Hive Homes of Idaho, Inc. The company started offering franchises in November 1992. In August 1996, the rights to the franchise system were transferred to Bee Hive Homes of America, Inc., an affiliate sharing common control. Further reorganizations occurred in October 1996, which involved geographically licensing the business. By March 2000, the original Bee Hive Homes, Inc. and Bee Hive Homes of Idaho, Inc. stopped offering franchises. In June 2000, Bee Hive Homes of America, Inc. licensed its franchise business to Bee Hive Homes Intermountain, Inc., which became the primary franchisor. Effective January 1, 2020, Bee Hives Homes, Inc. and Bee Hive Homes of Utah, Inc. merged into Bee Hive Homes Intermountain, Inc., which then officially changed its name to Bee Hive Homes, Inc., becoming the sole franchisor under a license agreement with Bee Hive Homes of America, Inc.
Financial Overview
Investment Range
$3,400,000 - $5,100,000
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$75,000
Royalty %
5%
Equipment Costs (Low)
$120,000
Equipment Costs (High)
$150,000
Working Capital
$173,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Bee Hive Homes has consistently demonstrated positive financial performance with unqualified audit opinions for the years ended December 31, 2023, 2022, and 2021. The company has shown strong positive net income and cash flows from operating activities across these years. While Bee Hive Homes' shareholder's deficit is substantial, it saw a reduction in 2023, and its current assets consistently outweigh its current liabilities, indicating healthy working capital. A significant non-cash transaction in 2023 involved a stock repurchase funded by a note payable, which impacted the shareholder's deficit but is distinct from operational profitability.
Financing Details
Bee Hive Homes does not offer any direct or indirect financing to its franchisees and does not guarantee any notes, leases, or obligations. Franchisees must arrange their own funding; however, other Bee Hive Homes franchisees have successfully obtained financing through various United States Small Business Administration loan programs.
Performance Metrics
Total US Locations
199
Franchised Units
199
Corporate Units
0
Avg Square Footage
10,000
Franchising Since
1992
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Bee Hive Homes has faced four litigation cases. Two lawsuits were filed in May 2020 by the National Fair Housing Alliance, alleging discrimination against fictitious deaf persons. One case, filed in the U.S. District Court for the District of New Mexico, was settled in March 2021, with the court maintaining jurisdiction for 36 months to ensure the settlement agreement's enforcement. The other case, filed in the U.S. District Court for the District of Utah, also settled in March 2021, and the court retained jurisdiction to enforce its settlement agreement. Bee Hive Homes denied any liability in both these matters. More recently, two additional lawsuits were filed in New Mexico in 2023. One, filed on May 9, 2023, by William Fisher, alleged negligence, unfair trade practices, and punitive damages against an individual franchisee, Bee Hive Homes of America, Inc. (an affiliate), and an administrator; this suit is ongoing. The second, filed on September 21, 2023, by Mary Martinez, alleged similar claims against a different franchisee, Buzz Operations, LLC, Bee Hive Homes of America, Inc., and an administrator. In this case, the court granted a motion to dismiss for lack of personal jurisdiction with prejudice.
Bankruptcy History
Bee Hive Homes has no bankruptcy history to disclose in this section.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Bee Hive Homes franchisees must provide written notice to the franchisor between six and nine months before the current term expires. At the time of notice and on the first day of the renewal term, franchisees must be in good standing, not be in default of any agreements with Bee Hive Homes or its affiliates, and directly or indirectly own the Home. They are also required to sign Bee Hive Homes' then-current franchise agreement, which may contain significantly different terms, at least three months prior to the renewal term. Additionally, the franchisee's Home, equipment, and operating procedures must meet the current standards applicable to new franchisees.
Training & Support Program
Franchisor Assistance
Bee Hive Homes provides pre-opening assistance, including site selection and evaluation, general architectural and design drawings, and an itemization of required furnishings, equipment, and supplies. They also furnish one standard exterior sign. Before opening, franchisees and their resident managers must complete up to three days of training at a designated location. Bee Hive Homes offers reasonable opening supervision to assist with staff hiring, training, marketing, inventory control, and promotional programs. For ongoing support, Bee Hive Homes' representatives provide reasonable assistance with operational, facilities, and marketing issues and are available for consultation for an additional, mutually agreed-upon fee (currently not less than $300 per day). Franchisees gain access to the 'Bee Hive Homes Owner/Operator Training Manual' and 'Bee Hive Homes Policy and Procedures Manual,' which Bee Hive Homes may modify. While not obligated, Bee Hive Homes may also publish newsletters, introduce new programs, and offer consultation during visits. Bee Hive Homes does not conduct its own advertising program for individual Homes and does not require franchisees to contribute to an advertising fund, though all franchisee advertising materials must be approved. For technology, Bee Hive Homes mandates the use of third-party data management software (currently Blue Step Software) at no upfront cost for the software itself, but franchisees are responsible for licensing, training, employee utilization, and maintaining a continuous internet connection (estimated $75 per month) that Bee Hive Homes can access. Franchisees must also use any specified call system.
Initial Training Hours
24
Training Location
Bee Hive Homes headquarters or other operating Bee Hive Homes locations
Ongoing Support
After opening, Bee Hive Homes offers its franchisees reasonable assistance with operational, facilities, and marketing issues. Representatives are available for consultation, for which an additional mutually agreed-upon fee (currently not less than $300 per day) is charged. Franchisees are also provided with access to the 'Bee Hive Homes Owner/Operator Training Manual' and 'Bee Hive Homes Policy and Procedures Manual,' which may be updated. Although not obligated, Bee Hive Homes may also publish newsletters, introduce new programs, and offer consultation during visits by its representatives. Bee Hive Homes does not run an advertising program for individual Homes, nor does it require franchisees to contribute to an advertising fund, though all franchisee advertising materials must be approved.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Limited
Staff Count
3
Territory Size Requirements
Bee Hive Homes defines a contiguous geographical area for each location that includes a population of at least 30,000 persons. This territory is not circular but is shaped based on the specific geographic and demographic characteristics surrounding the franchisee's Home.
Staffing Notes
Bee Hive Homes generally staffs its facilities with 1 to 4 persons, with higher staffing typically needed in the mornings and lower staffing at night. Each Bee Hive Homes facility must be directly supervised on-site by either the franchisee or a resident manager who has successfully completed the required training program. Resident managers do not necessarily need an ownership interest in the franchise and do not require approval from Bee Hive Homes. Franchisees are responsible for training additional resident managers, either themselves or by Bee Hive Homes representatives.