What constitutes 'Gross Revenues' for the purpose of calculating the Beehive Homes Franchise Royalty?

According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise royalty is based on 'Gross Revenues,' which are defined as the gross receipts of every kind and nature received by the franchisee, either directly or indirectly, from operating the franchised business, the Home, and/or providing services. The only exception to this definition is the amount of sales or use taxes levied on the sale of goods or services by a governmental taxing authority and actually paid to that authority.

In simpler terms, almost all money coming into the Beehive Homes business before taxes are deducted counts toward gross revenues. This includes all income from the core services of residential care for the elderly. This definition is important because the franchisee pays 5% of this Gross Revenue to Beehive Homes as a royalty fee.

The franchisee must submit a Monthly Revenues Report to Beehive Homes by the 10th of each month, detailing the Home's financial activity for the preceding month. This report must include Gross Revenues, all monies received or accrued, all sales or other services performed, and any other financial information Beehive Homes reasonably requires. Failure to submit the report on time results in a late charge of $100.00 for each late report. Additionally, failure to pay the franchise royalty when due will result in a one-time late charge equal to the lesser of 10% of the royalty due or the maximum late charge assessable under the laws of the state in which the Home is located.