When is the balance of the initial franchise fee for Beehive Homes due?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nitial Franchise Fee. Franchisee hereby promises and agrees to pay to Franchisor an initial franchise fee (the "Initial Franchise Fee") of Seventy-Five Thousand Dollars ($75,000.00), payable one-third upon signing of this Agreement and the balance in full upon the earlier to occur of the following: (i) the funding of any construction loan for the Home; or (ii) the issuance of a building permit for the Home. The Initial Franchise Fee is fully earned and nonrefundable as and when paid as consideration for the expenses incurred by Franchisor in furnishing assistance and service to Franchisee and for Franchisor's lost or deferred opportunity to franchise to others. If the Franchise Fee is not paid in full on or before the date which is one year after the Effective Date of this Agreement, Franchisor may, in its sole discretion, terminate this Agreement, and no fees will be r
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the initial franchise fee is $75,000. One-third of this fee is due upon signing the franchise agreement. The remaining balance is due upon the earlier of two conditions: either when the construction loan for the Beehive Homes location is funded, or when the building permit for the location is issued.
Beehive Homes stipulates that if the initial franchise fee is not paid in full within one year of the agreement's effective date, Beehive Homes has the right to terminate the agreement. In the event of termination due to non-payment, the franchisee will not receive a refund of any fees already paid. This policy underscores the importance of securing financing and obtaining necessary permits promptly.
For prospective Beehive Homes franchisees, this payment structure means that a significant portion of the initial investment is required upfront, with the remainder tied to tangible progress in establishing the physical location. Franchisees should be prepared to manage their construction financing and permitting processes efficiently to avoid delays that could jeopardize their franchise agreement. Understanding these payment terms is crucial for financial planning and ensuring a smooth launch of their Beehive Homes franchise.