Are the amounts due to shareholders by Beehive Homes interest-bearing?

According to Beehive Homes' 2025 Franchise Disclosure Document, amounts due to shareholders for distributions declared are non-interest bearing. Specifically, as of December 31, 2024, the company owed a shareholder $0, while owing $12,609 for both 2023 and 2022. These amounts are payable on demand and do not accrue interest. This means that Beehive Homes is not obligated to pay any additional amount beyond the initially declared distribution.

However, the FDD also notes that shareholder receivables do bear interest. The company's shareholder receivables totaled $74,938, $12,084, and $27,474 for the years ended December 31, 2024, 2023, and 2022, respectively. The unpaid balance of the receivable bears interest at a rate of 4.19% and is payable annually. The receivables are due on demand.

This distinction between amounts due for distributions and shareholder receivables is important for prospective franchisees to understand. While declared distributions do not incur interest, other forms of financial obligations, such as receivables, do. Franchisees should seek clarification from Beehive Homes regarding the nature of any potential financial interactions with shareholders to fully understand their financial obligations and potential costs.