On what date does the Beehive Homes Franchise Royalty commence?

According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise royalty commences on the earlier of two conditions. First, it begins on the first day of the first full calendar month after the Beehive Homes location reaches 50% occupancy. Alternatively, the franchise royalty commences on the first day of the sixth full calendar month following the home's opening date.

This means a new Beehive Homes franchisee will not immediately be subject to royalty payments. The start date is tied either to achieving a certain level of operational success (50% occupancy) or a fixed time period (six months after opening), whichever comes first. This provides a ramp-up period for the franchisee to establish the business before the royalty obligations begin.

For a prospective franchisee, this is a beneficial arrangement as it allows time to build the business and generate revenue before needing to pay royalties. However, it's important to note that the royalty will begin after six months regardless of occupancy levels, so franchisees need to plan accordingly. Understanding these triggers for royalty payments is crucial for financial forecasting and business planning.