diff --git a/app/models/enterprise.rb b/app/models/enterprise.rb
index 8f5c940e77..462910aa0d 100644
--- a/app/models/enterprise.rb
+++ b/app/models/enterprise.rb
@@ -253,6 +253,10 @@ class Enterprise < ActiveRecord::Base
     self.sells != "none"
   end
 
+  def is_hub
+    self.sells == 'any'
+  end
+
   # Simplify enterprise categories for frontend logic and icons, and maybe other things.
   def category
     # Make this crazy logic human readable so we can argue about it sanely.
@@ -366,26 +370,33 @@ class Enterprise < ActiveRecord::Base
   end
 
   def relate_to_owners_enterprises
-    # When a new enterprise is created, we relate them to all enterprises owned by
-    # the same owner, in both directions. So all enterprises owned by the same owner
-    # will have permissions to every other one, in both directions.
+    # When a new producer is created, it grants permissions to all pre-existing hubs
+    # When a new hub is created,
+    # - it grants permissions to all pre-existing hubs
+    # - all producers grant permission to it
 
     enterprises = owner.owned_enterprises.where('enterprises.id != ?', self)
 
-    enterprises.each do |enterprise|
+    # We grant permissions to all pre-existing hubs
+    enterprises.is_hub.each do |enterprise|
       EnterpriseRelationship.create!(parent: self,
                                      child: enterprise,
                                      permissions_list: [:add_to_order_cycle,
                                                         :manage_products,
                                                         :edit_profile,
                                                         :create_variant_overrides])
+    end
 
-      EnterpriseRelationship.create!(parent: enterprise,
-                                     child: self,
-                                     permissions_list: [:add_to_order_cycle,
-                                                        :manage_products,
-                                                        :edit_profile,
-                                                        :create_variant_overrides])
+    # All pre-existing producers grant permission to new hubs
+    if is_hub
+      enterprises.is_primary_producer.each do |enterprise|
+        EnterpriseRelationship.create!(parent: enterprise,
+                                       child: self,
+                                       permissions_list: [:add_to_order_cycle,
+                                                          :manage_products,
+                                                          :edit_profile,
+                                                          :create_variant_overrides])
+      end
     end
   end
 
diff --git a/spec/models/enterprise_spec.rb b/spec/models/enterprise_spec.rb
index 494a543260..365bfd6ab0 100644
--- a/spec/models/enterprise_spec.rb
+++ b/spec/models/enterprise_spec.rb
@@ -594,46 +594,70 @@ describe Enterprise do
   describe "callbacks" do
     describe "after creation" do
       let(:owner) { create(:user, enterprise_limit: 10) }
-
       let(:hub1) { create(:distributor_enterprise, owner: owner) }
       let(:hub2) { create(:distributor_enterprise, owner: owner) }
-      let(:producer) { create(:supplier_enterprise, owner: owner) }
+      let(:hub3) { create(:distributor_enterprise, owner: owner) }
+      let(:producer1) { create(:supplier_enterprise, owner: owner) }
+      let(:producer2) { create(:supplier_enterprise, owner: owner) }
 
-      let(:er1) { EnterpriseRelationship.where(child_id: hub1).last }
-      let(:er2) { EnterpriseRelationship.where(child_id: hub2).last }
-      let(:er3) { EnterpriseRelationship.where(child_id: producer).last }
-      let(:er4) { EnterpriseRelationship.where(parent_id: hub1).last }
-      let(:er5) { EnterpriseRelationship.where(parent_id: hub2).last }
-      let(:er6) { EnterpriseRelationship.where(parent_id: producer).last }
-
-      it "establishes bi-directional relationships for new hubs with the owner's hubs and producers" do
-        hub1
-        hub2
-        producer
-        enterprise = nil
-
-        expect do
-          enterprise = create(:enterprise, owner: owner)
-        end.to change(EnterpriseRelationship, :count).by(6)
-
-        [er1, er2, er3].each do |er|
-          er.parent.should == enterprise
-          er.permissions.map(&:name).sort.should == ['add_to_order_cycle', 'manage_products', 'edit_profile', 'create_variant_overrides'].sort
+      describe "when a producer is created" do
+        before do
+          hub1
+          hub2
         end
 
-        [er4, er5, er6].each do |er|
-          er.child.should == enterprise
-          er.permissions.map(&:name).sort.should == ['add_to_order_cycle', 'manage_products', 'edit_profile', 'create_variant_overrides'].sort
+        it "creates links from the new producer to all hubs owned by the same user, granting all permissions" do
+          producer1
+
+          should_have_enterprise_relationship from: producer1, to: hub1, with: :all_permissions
+          should_have_enterprise_relationship from: producer1, to: hub2, with: :all_permissions
+        end
+
+        it "does not create any other links" do
+          expect do
+            producer1
+          end.to change(EnterpriseRelationship, :count).by(2)
         end
       end
 
-      it "establishes bi-directional relationships when producers are created" do
-        hub1
-        hub2
 
-        expect do
-          producer
-        end.to change(EnterpriseRelationship, :count).by(4)
+      describe "when a new hub is created" do
+        it "it creates links to the hub, from all producers owned by the same user, granting all permissions" do
+          producer1
+          producer2
+          hub1
+
+          should_have_enterprise_relationship from: producer1, to: hub1, with: :all_permissions
+          should_have_enterprise_relationship from: producer2, to: hub1, with: :all_permissions
+        end
+
+
+        it "creates links from the new hub to all hubs owned by the same user, granting all permissions" do
+          hub1
+          hub2
+          hub3
+
+          should_have_enterprise_relationship from: hub2, to: hub1, with: :all_permissions
+          should_have_enterprise_relationship from: hub3, to: hub1, with: :all_permissions
+          should_have_enterprise_relationship from: hub3, to: hub2, with: :all_permissions
+        end
+
+        it "does not create any other links" do
+          producer1
+          producer2
+          expect { hub1 }.to change(EnterpriseRelationship, :count).by(2) # 2 producer links
+          expect { hub2 }.to change(EnterpriseRelationship, :count).by(3) # 2 producer links + 1 hub link
+          expect { hub3 }.to change(EnterpriseRelationship, :count).by(4) # 2 producer links + 2 hub links
+        end
+      end
+
+
+      def should_have_enterprise_relationship(opts={})
+        er = EnterpriseRelationship.where(parent_id: opts[:from], child_id: opts[:to]).last
+        er.should_not be_nil
+        if opts[:with] == :all_permissions
+          er.permissions.map(&:name).sort.should == ['add_to_order_cycle', 'manage_products', 'edit_profile', 'create_variant_overrides'].sort
+        end
       end
     end
   end