For a Beehive Homes franchise in Illinois, when is the payment of the initial franchise fee due?

According to Beehive Homes' 2025 Franchise Disclosure Document, the payment of the initial franchise fee for a location in Illinois is deferred. The initial franchise fee is not due until Beehive Homes has met its initial obligations to the franchisee and the franchisee has commenced business operations. This requirement was imposed by the Illinois Attorney General due to Beehive Homes' financial status.

This addendum modifies the standard terms of the Beehive Homes franchise agreement for franchisees in Illinois. Typically, as described in section 4.1, the initial franchise fee of $75,000 is paid in installments: one-third upon signing the agreement, and the balance upon the earlier of the funding of a construction loan or the issuance of a building permit. However, the Illinois addendum supersedes these terms.

For a prospective Beehive Homes franchisee in Illinois, this deferral of the initial franchise fee payment could be a significant benefit. It reduces the upfront financial burden and risk, as the franchisee does not have to pay the fee until Beehive Homes has fulfilled its initial obligations and the business is ready to start operating. This provides a level of financial assurance and protection for the franchisee.

It is important for prospective franchisees to carefully review the Illinois addendum and understand the specific conditions and obligations that must be met before the initial franchise fee becomes due. They should also seek clarification from Beehive Homes regarding the specific steps involved in meeting the initial obligations and commencing business operations.