Bee Hive Homes
Bottom line
- Total investment $3.4M – $5.1M including a $75K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $843K/year.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 156 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Bee Hive Homes unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Bee Hive Homes units return on equity?
Equity IRR · 5-yr
38.8%
5.14× MOIC
Year-1 DSCR
2.16×
EBITDA ÷ debt service
Equity required
$3.9M
on $12.6M purchase
Total debt
$8.8M
SBA $5.0M + senior + seller note
Overview
About
Bee Hive Homes franchisees operate assisted living or senior residential care facilities, managing day-to-day resident care, staffing, regulatory compliance, marketing, and family relations. Franchisees are responsible for facility operations including nursing/caregiver coordination, meal services, activities programming, and health/safety protocols across their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Senior living franchise with high capital requirements, undisclosed unit profitability, stagnant growth, and material litigation involving resident care and discrimination—requires deep due diligence on actual franchisee returns and liability exposure.
Score breakdown · what drove the 57 / 100 rating
- 01MINORHigh initial investment ($3.4M-$5.1M) against modest average unit revenue ($843K) creates unfavorable ROI math and extended payback period
- 02MEDNet income not disclosed in FDD Item 19 prevents accurate profitability assessment and suggests weak unit economics
- 03MINORStagnant unit growth (1.0% YoY) across 201 units indicates market saturation or franchisee dissatisfaction
- 04MINORFHA discrimination settlement (2021) signals potential systemic compliance or operational issues in senior living care
- 05MINORThree active/recent negligence and unfair trade practice lawsuits involving residents/estates create reputational and liability exposure
- 06MINOR5% royalty on $843K average revenue = $42K annual cost before operating expenses, limiting franchisee margins
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
46 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Bee Hive Homes · FDD (2025) PDF