What is the cancellation fee amount for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
AND FRANCHISE ROYALTY
- 4.1. Initial 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)
Based on the 2025 Beehive Homes Franchise Disclosure Document, there is no mention of a specific cancellation fee. However, the document does state the initial franchise fee is $75,000, and under certain conditions, Beehive Homes may terminate the agreement if the fee is not paid. The FDD specifies under what conditions the initial franchise fee is nonrefundable.
For a prospective Beehive Homes franchisee, this means that understanding the conditions under which the franchise agreement can be terminated, and the fees forfeited, is crucial. It is important to note 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, and no fees will be refunded to the franchisee.
Since the FDD does not explicitly state a cancellation fee, it would be prudent for a potential franchisee to seek clarification from Beehive Homes regarding any potential costs associated with canceling the franchise agreement, especially after the initial franchise fee has been paid, either partially or in full. Understanding these terms can help in making an informed decision and avoiding potential financial losses.