What is the annual interest rate assessed on delinquent Beehive Homes royalty payments?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to late charges, delinquent payments will be assessed interest at eighteen percent (18%) per annum or any lower maximum rate of interest allowable under the laws of the state in which YOUR Bee Hive Home is located from the due date until the date paid.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if a royalty payment is not paid when due, it will incur a late charge of 10% of the past due amount. In addition to this late charge, Beehive Homes assesses an annual interest rate of 18% on any delinquent royalty payments. This interest is calculated from the date the payment was originally due until it is actually paid. However, the FDD also specifies that if the laws of the state in which the Beehive Homes location operates prescribe a lower maximum interest rate, that lower rate will apply instead of the 18%.
This means that a Beehive Homes franchisee could face significant financial penalties for late royalty payments. The combination of a 10% late charge and an 18% annual interest rate could quickly increase the amount owed. It is important for prospective franchisees to understand the due dates for royalty payments and ensure timely payments to avoid these charges.
Many franchise systems impose interest on late payments, but the specific rates can vary. The Beehive Homes FDD clearly outlines these potential costs, allowing franchisees to plan accordingly. Franchisees should be aware of the potential for these charges and factor them into their financial planning.