When is the first payment of the initial franchise fee for Beehive Homes due?
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)
According to Beehive Homes' 2025 Franchise Disclosure Document, the initial franchise fee is $75,000. The first payment, equal to one-third of the total fee, is due upon signing the franchise agreement. The remaining balance is due upon the earlier of either the funding of any construction loan for the home or the issuance of a building permit for the home.
It is important to note that the initial franchise fee is fully earned and nonrefundable once paid. This means that Beehive Homes is not obligated to return any portion of the fee, even if the franchisee does not open a location. This nonrefundable nature compensates Beehive Homes for the expenses incurred in providing assistance and services to the franchisee, as well as for the lost opportunity to franchise to others.
Furthermore, if the franchise fee is not paid in full within one year of the effective date of the agreement, Beehive Homes has the right to terminate the agreement at its discretion. In such a case, no fees will be refunded to the franchisee. This clause emphasizes the importance of adhering to the payment schedule outlined in the franchise agreement.