What is the dependency between the date of report and the royalty fee payment for a Beehive Homes franchise?
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. WE have the right to examine YOUR books and records. If this examination reveals a discrepancy of two percent (2%) or more, then YOU will reimburse US for the cost of the examination.
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 payment is directly linked to the monthly report a franchisee submits. Beehive Homes franchisees are required to pay a royalty fee equal to 5% of their Gross Revenues. To calculate this fee, franchisees must furnish an accurate electronic report to Beehive Homes by the 10th of each month, detailing their gross revenues for the previous month. Gross Revenues are defined as all gross receipts received or receivable less sales or use tax.
The timing of the report directly impacts the royalty payment. The royalty fee, calculated from the data reported, must be paid on or before the 10th day of each calendar month. Failing to submit the report in the required manner by the 10th results in a $100 penalty. This structure incentivizes timely and accurate reporting from franchisees, ensuring Beehive Homes receives royalty payments promptly.
Furthermore, Beehive Homes imposes additional charges for late royalty payments. A royalty payment not received when due incurs a late charge of 10% of the past due balance. Delinquent payments also accrue interest at a rate of 18% per annum, or the maximum rate allowed by the state where the Beehive Homes location is situated. Beehive Homes retains the right to examine a franchisee's books and records, and if an examination reveals a discrepancy of 2% or more in reported Gross Revenues, the franchisee must reimburse Beehive Homes for the cost of the examination. These measures ensure compliance and accuracy in royalty reporting and payments.