www.BeeHiveHomes.com

BeeHive Homes Assisted Living Franchises

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 TrendsIn 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 TrendsAccording 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 FranchiseUnlike 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

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

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 willadapt 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

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

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

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

BeeHiveHomes

Incorporated

BeeHiveHomes

Training Homes

NEWFRANCHISE

OWNER

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

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

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

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 thecountry 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. Assumptions2. Monthly Cash Flow3. Building Costs4. First Twelve (12) Month’s Cash Flow Projections5. Pro forma Balance Sheet6. Ten (10) year Cash Flow and Sales Analysis

PRO FORMA ANALYSIS

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

Sign the Non-Disclosure DocumentOur 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 QuestionnaireThe 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 BusinessOwning 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 needto 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 HomeIn 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 ResearchBeeHive 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 PropertyA 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

Sign the Uniform Franchise Disclosure DocumentThe Universal Franchise Disclosure Document (UFDD) is a legal document that all franchisors must furnish to franchisees, as regulated by the Federal TradeCommission (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 afranchisor 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 EntityAs 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 FeeWhen 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 AgreementAs 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.