When are the building costs due for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | High | Low | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee | $75,000 (1) | $75,000 | Lump Sum | One-third (1/3) upon signing and balance upon earlier of financing or permitting | US |
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, building costs, which range from $2,875,000 to $4,500,000, are due as incurred. This means that franchisees will pay for construction as the expenses arise during the building process. These payments are made to third-party lenders and contractors.
This 'as incurred' payment schedule is common in construction-heavy franchises like Beehive Homes, as it aligns payments with the progress of the building project. Franchisees should budget carefully and maintain open communication with their contractors and lenders to manage cash flow effectively throughout the construction phase. Understanding the specific payment milestones and having sufficient capital on hand is crucial to avoid delays or financial strain.
Prospective Beehive Homes franchisees should obtain a detailed construction timeline and payment schedule from their contractors. They should also secure financing commitments that align with these payment milestones. It is important to note that the initial investment table does not include land costs, which can significantly impact the overall investment. Therefore, franchisees need to factor in land acquisition costs separately.