Beehive Homes Franchise Infomation PDF

1. www.BeeHiveHomes.com
BeeHive Homes Assisted Living Franchises

2. In 1996 after nine years of providing exceptional senior care, BeeHive Homes became
a franchisor of assisted living facilities. When that happened, BeeHive Homes became
the first ever combined product of the two fastest growing trends in American business,
assisted living homes and franchising.
Franchising Trends
In recent years
franchising has played
an increasing role in the
American economy.
With more than 900,000
franchised businesses
in operation across
the country which are
indirectly responsible
for providing 21 million
jobs and generating
$2.3 trillion in economic
output, franchises
drive the economy.
The sheer size and
growth of franchising
are indications of how well this method of business is meeting the needs of consumers
across the nation. The franchise explosion is due, in part, to the outstanding success
ratio franchises enjoy. While just 23 percent of all independent small businesses
succeed in the first five years, 92 percent of all franchise businesses are still operating
and successful. Franchises are successful because they share a combination of the
right elements a business requires to prosper: the dedication and commitment of the
entrepreneur, an established business system, and the resourcefulness of a large
organization.
Assisted Living Trends
According to the U.S. Labor Department, 13 of the 20 fastest growing occupations
between 2004 and 2014 were related to health care. The U.S. Bureau of Labor Statistics
stated that 26 percent of all new jobs created in the entire U.S. economy before 2018
will be in the health care and social assistance industry. They say that the health care
industry—which includes public and private hospitals, nursing and residential care
facilities, and individual and family services—is expected to grow by 24 percent or 4
million new jobs. Employment growth will be driven by an aging population and longer
life expectancies.
The Franchising and Assisted Living Combination in a BeeHive Home Franchise
Unlike many “open one day and franchising the next” franchise companies, BeeHive
Homes has built the operational standards of care from the basic building blocks of
experience over the last 23 years, patience, and hard work. In no other industry will
you find the degree of legal oversight, policies, and procedures infused into all aspects
of construction, licensing, and ongoing operation. If any industry could benefit from
franchising, it is the assisted living industry. A new BeeHive Homes franchisee clearly
inherits this foundation to build a successful and high quality assisted living home.
BEEHIVE HOMES ASSISTED LIVING FRANCHISES
Percentage of Businesses Still Operating after 10 years. Source: US Dept. of Commerce

3. There’s an old saying in franchising, “You’re in business for yourself, but not by
yourself.” The reason people get into a franchise is to have control of their own business
while at the same time receiving a great deal of support. Before franchising came along
in the 1950s, individual business owners had to start from scratch when opening a
business. Depending on the business type, the road to success was difficult or it was
nearly impossible.
All businesses have what are called barriers to entry—conditions that make getting into
certain businesses extremely difficult. These barriers include high funding requirements,
high technological or trade learning curves, unknown or little known business practices,
tightly controlled markets, stringent government licensing procedures, the need for
highly skilled or trained employees, long lead times, and/or specifically designed facilities.
To build an assisted living business, one would need to know senior health care. This
includes special needs issues like Alzheimer’s and dementia, government health and
welfare policies and procedures at the state and federal levels, administrative and
practitioner licensing, senior care marketing, and many other senior care issues. This also
includes knowing how to create an approved dietitian meal plan for the various needs
of residents and then preparing it for them. Obviously, one would also have to acquire
the normal business skills like accounting, business planning, employee management,
banking, employment law, employee training, contract law, planning and zoning law,
architectural design and engineering, senior care construction design, and construction
management, just to name a few of the big ones!
Each of these components for creating a quality assisted living business requires
substantial funding and time. Alone, each of these represents a very significant barrier
to entry that can be difficult for a business to overcome. Combining these elements into
one business model as BeeHive Homes has done significantly influences the potential
for success.
BeeHive Homes represents the newest frontier in franchising in an industry that
desperately needs solutions to the arrival of the Baby Boomers. Operating as a franchise,
BeeHive Homes reduces the barriers to entry while at the same time increases the
quality of senior care. Our way of doing business allows a potential franchisee to focus
more on senior care and less on all of the other practices that would normally be required
to open and operate a quality home. This is classic franchising applied to our greatest
natural challenge—the aging of America.
THE CASE FOR A BEEHIVE FRANCHISE

4. Baby Boomers have worked and competed for everything they have, which makes them
look at retirement and aging differently. They want to remain active and independent for
as long as possible. As their activity level diminishes, they are adamant that the senior
living model their grandparents experienced—convalescent centers or nursing facilities—
will not be their future. Boomers see the new assisted living model as a giant step
toward what they want their care to be.
Yet as they currently place their parents in assisted living homes, they want more
options, more influence, more qualities that are in line with the life they are currently
living. They want to remain independent until the end. In the eyes of a Boomer,
independence does not only mean being physically able but, more importantly, having
influence and some control of the surrounding environment. Boomers are mentally ready
for physical limitations—they are not, however, mentally ready for a loss of influence on
their world. Many assisted living facilities do not allow for true independence. They are
large and inherently impersonal. Resident and family influence on the activities, meals,
and schedules is very limited.
As the Boomers research the best possible place for their parent, they cannot help but
look into their own future. They are looking for homes that not only say they will
adapt to their parents’ needs but actually have the capacity to handle the requests for
personalization that the Boomers themselves make. At BeeHive Homes we clearly see
the resident and their family as the greatest resource to our care. Our staff becomes an
extension of the family. They are constantly accessible without the typical red tape for
care requests. BeeHive Homes family staff welcomes the input—they are looking for
the personal touch that only a family can provide. This level of care is not merely part of
the franchised method of our homes, it is an inherent outcome of the accessibility of our
staff, the ratio of our staff to our residents, and the very design of the home.
BABY BOOMERS REDEFINE INDEPENDENCE

5. Assisted living is now the standard for out-of-the-home care for seniors. Many
corporations are providing assisted living across the country in large planned
communities. These facilities can be well over 200 residents with a hotel-like feel. This
large institution does not feel right to many residents or their families. Instead of looking
like a home or feeling like a home, it looks like a mall and needs to be called a center or a
community or a facility.
Across the country BeeHive Homes look like real homes and actually simulate a home-
like scenario. With our most popular home layout of 16 bedrooms surrounding a central
sky lit and vaulted ceiling in the family room and kitchen, residents are able to feel the
difference a real home design can provide. They are able to watch the staff prepare
the home-cooked meals and at times, in some states, participate in the cooking and
the baking. Residents and families feel they are part of a normal functioning home,
with a familiar dining room table, front porch, and back yard. These are homes that fill
with family during special occasions, allowing all to take part in the activities and family
environment that is part of the BeeHive Homes franchise.
BeeHive Homes, with its home-like footprint, is the perfect fit for any town, large or
small. We are a welcomed option from larger, less personal facilities located nationwide.
All communities benefit as our homes provide local jobs and keep the seniors near; our
residents continue to enjoy the communities to which they have long contributed. As
our seniors transition from independent living to our assisted living homes, they remain
an integral member of the communities in which they have lived and served. No matter
where the location, a BeeHive Homes franchise will be a nationally supported operation
regardless of the community size.
HOME-LIKE FEEL IS MORE THAN LOCATION
SOLUTION FOR ALL SIZED COMMUNITIES

6. Small independent homes without the backing of a franchise can fill a great need in the
communities where they operate. These homeowners do their best to create a caring
world usually by remodeling existing homes, which might have stairs, tight and limited
bathrooms, and narrow halls with tight doorways. These facilities can have great curb
appeal but lack the internal structure that combines appropriate assisted living care with
a home-like setting. Furthermore, the owners are left to their own proactive efforts to
learn what best practices they should be implementing. At minimum, they are left to the
state rules and regulations to guide them in their care practices.
For over 23 years at BeeHive Homes we have molded the procedures, policies, activities,
regulations, and oversight capability to help the franchisee provide truly world-class
care combined with a small home setting. Franchisees are trained and become part of a
growing networked community of care providers that support and help one another.
A PERSONAL HOME WITH NATIONAL SUPPORT

7. BEEHIVE HOMES INC. ORGANIZATIONAL CHART
The BHH Mentoring
Program links you to
existing homeowners who
have proven to be among
the best franchisees in the
entire BeeHive family.
These mentors will be
available to you and your
staff for quality advice,
training, and sharing of
best practices that can
only come from
experience.
The corporate office is
located in Boise, Idaho.
The BeeHive Training
Team and Facility,
Marketing, Legal, and
Operational Support Staff
are located there.
The BHH training homes
are functioning homes
located around the nation
that have proven to be
the best facilities we
have. You will spend
several days in these
facilities learning the BHH
operational standards,
policies, and procedures.
BeeHive
Homes
Mentoring
BeeHive
Homes
Incorporated
BeeHive
Homes
Training Homes
NEW
FRANCHISE
OWNER

8. Business Operation Services and Materials
• Business Operation Services and Materials
• Local Market Analysis
• Location Selection
• Business Plan
• Assisted Living Industry Training
• Employee Management Training
• Small Business Financing Experience
Facility Operation Services and Materials
• Floor Plans of different styles to suit your needs
• Certified Policies and Procedures Manuals
• Owner/Operator Manual
• Emergency Procedures
• Employee Manual
• Certified Dietitian Manuals (5-8 week recipe schedule)
• Activity Manual
• In-service Manual
• Drug and Alcohol Testing Policy Manual
• HUD Fair Housing Act
• HIPAA Manual
• OSHA Manual
• Arbitration Agreement
• Shared Risk Agreement
• Accident Liability Waiver
• New Resident Assessment and Contract Packets
• New Employee Processing Packets
• Training & Employee Orientation Videos
• Doctor Packets
• Miscellaneous Workbooks
Marketing Services and Materials
• Assisted Living Marketing Training
• Exclusive web based technology that allows owners and staff to capture each
resident’s medical data, create resident reports, and monitor resident’s activity
and progress.
• Exclusive online training available only to BeeHive Homes franchisees
and their staff.
• Web Generated Resident Referrals
• BeeHive Orientation “How to Present the Home” DVD
• Your Personalized Micro Web Site
• Proven Advertising Tools
• Location Specific Brochures and Business Cards Designs
• Building Signs (36” X 16”)
• Corporate newsletters
MATERIALS PROVIDED

9. The BeeHive Homes design team has created over 25 proprietary variations on four basic
house plans. The very layout of the building has been perfected over the years and is
essential to the level of quality we are able to maintain. Your lot requirements will need
to be taken into consideration when choosing your BeeHive Home design. Interior and
exterior look and feel are all customizable to match local CC&R codes and local styling.
Sample 21 bed facility:
HOME PLANS

10. Over the last few decades BeeHive Homes has acquired extensive experience in
creating new assisted living BeeHive Homes. This experience has been harnessed in a
comprehensive and specific checklist that is nearly 300 steps long. We will provide you
with this list and guide you to ensure that all required facets for a successful opening
of a BeeHive assisted living home are addressed. As you progress through the list, you
will know what to do and when to do it—like when to start hiring employees or when to
hang your state permit on your wall.
The checklist starts with the Preliminary Discussions to ascertain your goals, abilities,
and your commitment to the assisted living concept. The list will carry you through the
pre-construction and construction phases of the business.
During the construction phase, numerous levels of training will take place both within
your BeeHive Home and within the nearest operating training home. You will be trained
to identify the best applicants for your employed caregivers, as well as what training is
required by the various certifications required by your state for your home care providers.
This and other training will allow you to be ready for the first inspection of your home
by Beehive Corporate and state health officials. You will be prompted on operational
milestones including ordering marketing materials, creating press releases and Grand
Opening advertisements, and generating Grand Opening and Open House invitations
along with other successful marketing and advertising media.
The Post Opening checklist will include any follow-up training needed for the caregiver
staff as well as training to ensure all local and state continuing requirements are in place
and being met.
PROPRIETARY DEVELOPMENT CHECKLIST

11. Federal law requires you to complete your own pro forma, or analysis of a business
opportunity, regarding the projected financial performance of your BeeHive Home. We
recommend you call any current sub-franchisor or franchisee and inquire as to what
their financial performance and experience has personally been as an operator of their
own BeeHive Home. BeeHive Homes, Inc. does not promise, guarantee, or accept any
responsibility or liability for any information you may obtain from a sub-franchisor or
franchisee operating his or her own BeeHive Home.
Cost data can be obtained from information you may receive from a sub-franchisor’s
and franchisee’s personal experience in the construction and operation of their personal
BeeHive Home. These costs will vary depending on the area of the
country and the time of year.
You will need to research the market in which you intend to be operating to determine
the rates you may be able to charge monthly for your residents. This can be done by
calling or actually visiting other assisted living homes in the market and obtaining from
them their actual rates. BeeHive Homes, Inc. does not promise, guarantee, or accept any
responsibility or liability with respect to the information you may receive from the sub-
franchisor or franchisee.
Specific Areas That Should Be Defined In A Pro Forma Outline:
1. Assumptions
2. Monthly Cash Flow
3. Building Costs
4. First Twelve (12) Month’s Cash Flow Projections
5. Pro forma Balance Sheet
6. Ten (10) year Cash Flow and Sales Analysis
PRO FORMA ANALYSIS

12. Franchise and Royalty Fees
• The initial franchise fee is $60,000
• The first half of the franchise fee will secure your geography.
• Multiple unit territories are available.
• The royalty fees are 5 percent of gross revenues for the life of the contract. BeeHive
Homes, Inc. does not guarantee or accept responsibility or liability with respect to the
information you may receive from the sub-franchisor or franchisee.
These expenses include the property cost and the building investment. Costs vary based
on the floor plan of your home, the local market, and the price of your lot. Turn-key fran-
chise opportunities are available from time to time.
BeeHive Homes is not directly involved in financing. We do, however, have abundant
experience in the many financing options available to new franchisees.
We are a member of the Assisted Living Federation of America (ALFA). We provide an
environment that fosters independence, dignity, and respect for our residents, families
and employees. We are equally committed to providing high quality care and optimal
quality of life for our residents. We support ALFA’s Core Principles.
FINANCING YOUR FRANCHISE
ASSOCIATIONS OF BEEHIVE HOMES

13. Sign the Non-Disclosure Document
Our standard non-disclosure document allows us to be as candid as possible about our
proprietary business operations. You will need to sign this before you speak with our
homeowners. Fax it to 208-939-2367.
Complete and Return the Questionnaire
The questionnaire is designed to help potential franchisees articulate their business
histories and financial abilities. Please consider this as a type of résumé and fill it out
completely. When complete, fax it to 208-939-2367.
Finance Your Business
Owning a franchise means you are an independent business owner operating under
the business model provided by the franchisor. BeeHive Homes does not provide
financing. A lending institution will need to be assured of your ability and your financial
strength to own and operate a BeeHive Homes franchise. A bank will typically need
to see that you and/or your partner have 20 percent of the overall cost of your
franchise available in cash or land assets.
Visit a Current Beehive Home
In order to fully understand the unique place in the market that BeeHive Homes
provides, you will need to visit an existing BeeHive Home. Feel free to visit any home
you wish. Please be aware that our homeowner’s first priority is to the residents of the
homes. If at all possible, allow us to set up a time that would be best for the residents
and the owner of an operating home.
Conduct Market Research
BeeHive Homes, Inc. will conduct a market analysis to determine for ourselves if
your location will be suitable for a home. We will happily share this information with
you. However, you will need to conduct your own analysis and not just trust our data.
Consider local factors like average rents, census rates, and competitive businesses.
Choose Property
A typical property needs to be one acre. Different local laws and regulations determine
zoning requirements, parking regulations, and street setbacks. Visit with your local
zoning commissions and describe the franchise. They will tell you what zoning is
appropriate. The costs for improvements, like water and sewer, etc., also need to be
evaluated.
We require a residential feel as much as possible for the surrounding area. Each lot
must pass a corporate franchise inspection for BeeHive Homes consistency and
quality standards.THE FIRST STEPS TO YOUR FRANCHISE

14. Sign the Uniform Franchise Disclosure Document
The Universal Franchise Disclosure Document (UFDD) is a legal document that all
franchisors must furnish to franchisees, as regulated by the Federal Trade
Commission (FTC). This document must be presented at least 14 days prior to the
signing of a Franchise Agreement. The UFDD contains material information about a
franchise operation and is designed to help franchisees analyze the merits of a
franchisor and the franchise contract in plain English. Regardless of industry, size, or
any other factor, the UFDD follows the same format, which contains the following
among other things:
• The Franchisor and Any Predecessors
• Business Experience of the Franchise
• Litigation History
• Bankruptcy (i.e., any franchisees who may have filed)
• Listing of the Initial Franchise Fee and Other InitialPayments
• Other Fees and Expenses
• Statement of Franchisee’s Initial Investment
• Obligations of the Franchisor; Other Supervision, Assistance or Services
• Exclusive/Designated Area of Territory
• Trademarks, Service Marks, Trade Names, Logotypes and Commercial Symbols
• Patents and Copyrights
• Obligations of the Franchisee to Participate in the Actual Operation of the
Franchise Business
• Renewal, Termination, Repurchase, Modification and Assignment of the
Franchise Agreement Information
• Contracts
• Acknowledgment of Receipt by Respective Franchisee
Create an Operating Business Entity
As an independent business owner, you will need to create a business entity to own
and operate your BeeHive Home. Consult with your accountant and attorney about
the best way to create this entity.
Pay the Franchise Fee
When you pay the franchise fee, your territory location will be set. At this point no
other potential franchisor will be able to start a BeeHive Home within a standard
population buffer from your home.
Sign the Beehive Homes Franchise Agreement
As you sign this document, you will become an official BeeHive Homes franchisee.
You will enter into the construction and training phases of the Development Checklist
and begin your new career.