For a Beehive Homes franchise located in Virginia, when is the initial franchise fee due?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA AMENDMENT TO FRANCHISE AGREEMENT
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document to the contrary, the following provisions of the Virginia Retail Franchising Act ("Act") shall apply to any franchise located in the State of Virginia, which shall control to the extent of any inconsistency:
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- Franchise Fee. Payment of the initial Franchise Fee and other initial payments owed by franchisees to the franchisor shall be deferred until the franchisor has completed its preopening obligations under the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the standard agreement requires an initial franchise fee of $75,000. One-third of this fee is due upon signing the agreement, with the balance due upon the earlier of the funding of any construction loan for the home or the issuance of a building permit for the home. If the franchise fee is not paid in full within one year of the agreement's effective date, Beehive Homes may terminate the agreement, and no fees will be refunded.
However, for a Beehive Homes franchise located in Virginia, the payment of the initial franchise fee is modified by a Virginia addendum. This addendum stipulates that the initial franchise fee and other initial payments owed by franchisees to Beehive Homes are deferred.
Specifically, the Virginia addendum states that payment is deferred until Beehive Homes has completed its pre-opening obligations under the franchise agreement. This means that a Virginia franchisee will not be required to pay the initial franchise fee until Beehive Homes has fulfilled its responsibilities related to the pre-opening phase of the franchise.