What is the deadline for paying the Beehive Homes royalty fee each month?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU are required to pay a royalty to US equal to five percent (5%) of Gross Revenues on each franchise owned. Gross Revenues is defined in the Franchise Agreement, Article IV, paragraph 4.3, as being all gross receipts received or receivable less sales or use tax. Each month YOU will furnish an accurate electronic report to US, according to OUR reporting instructions, containing this information. This data will be required from YOU by the 10th of the month following each monthly reporting period. (If YOU don't furnish the date in the required manner by the 10th of the month, YOU must pay a $100.00 penalty.) The royalty fee, as calculated from the date you report, is to be paid on or before the 10th day of each calendar month. Royalties are not refundable. A Royalty which is not paid when due will bear a late charge equal to ten percent (10%) of the past due balance. In addition to late charges, delinquent payments will be assessed interest at eighteen percent (18%) per annum or any lower maximum rate of interest allowable under the laws of the state in which YOUR Bee Hive Home is located from the due date until the date paid.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the royalty fee, calculated from the franchisee's report, must be paid on or before the 10th day of each calendar month. Franchisees are required to submit an accurate electronic report containing gross revenue information by the 10th of the month following each monthly reporting period. Failure to furnish the data in the required manner by the 10th of the month results in a $100 penalty.
The royalty fee is 5% of Gross Revenues, defined as all gross receipts received or receivable less sales or use tax. Late royalty payments incur a charge of 10% of the past due balance. Additionally, delinquent payments are assessed interest at 18% per annum, or the maximum rate allowable by the state where the Beehive Homes location is situated, calculated from the due date until the payment date.
These financial obligations are typical in franchising, where franchisors collect royalties to support ongoing services and brand development. Franchisees should ensure they can accurately track and report gross revenues to avoid penalties and maintain good standing with Beehive Homes. The consistent application of these fees across all franchisees ensures equitable financial obligations within the Beehive Homes system.