When is the Beehive Homes franchise royalty payment due each month?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
f the Gross Revenues. The Franchise Royalty shall be paid monthly on or before the 10th day of each calendar month based upon the Gross Revenues of the preceding calendar month. The Franchise Royalty will commence on the earlier of (i) the first day of the first full calendar month following the date on which the Home reaches a 50% occupancy; or (ii) the first day of the sixth full calendar month following the date of opening of the Home. For purposes of determining the Franchise Royalty, "Gross Revenues" is defined to be the gross receipts of every kind and nature whatsoever received by Franchisee directly or indirectly in connection with the operation of the franchised business, the Home and/or providing of services, excepting only the amount of sales or use taxes levied upon the sale of goods or services by a governmental taxing authority and actually paid to said taxing authority.
- 4.4. Determination and Method of Payment of Franchise Royalty. The calculation and payment of the Franchise Royalty specified in Section 4.3 above shall be made as follows:
- (a) On or before the 10th day of each calendar month Franchisee shall provide to Franchisor a report the financial activity of the Home for the immediately preceding calendar month to Franchisor. The report shall show Gross Revenues, all monies received or accrued, all sales or other services performed, and such other information concerning the financial affairs of Franchisee as Franchisor may reasonably require. For purposes of this Agreement, such information shall be referred to as the "Monthly Revenues Report."
- (b) The Franchise Royalty shall be due and payable on the same date that the corresponding Monthly Revenues Report is due, and shall be paid concurrently with the submission of the corresponding Monthly Revenues Report.
- (c) If the Franchisee fails to deliver the required Monthly Revenues Reports to Franchisor on or before the 10th day of each month, a late charge of $100.00 shall be assessed for each Monthly Revenues Report which is not timely filed.
- (d) If the Franchisee fails to pay any Franchise Royalty when due, Franchisee shall be assessed a one-time late charge equal to the lesser of ten percent (10%) of the Franchise Royalty due or, if less, the maximum late charge assessable under the laws of the state in whic
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise royalty payment is due monthly, specifically on or before the 10th day of each calendar month. This payment is based on the gross revenues from the preceding calendar month. Franchisees must also submit a Monthly Revenues Report to Beehive Homes by the 10th day of each month, detailing the financial activity of the home for the previous month. This report should include gross revenues, all monies received or accrued, all sales or other services performed, and any other financial information Beehive Homes may reasonably require. The franchise royalty payment is due concurrently with the submission of this report.
Beehive Homes stipulates that failure to deliver the Monthly Revenues Report on time will result in a late charge of $100 for each late report. Additionally, if a franchisee fails to pay the franchise royalty when due, they will be assessed a one-time late charge. This late charge will be the lesser of ten percent (10%) of the royalty due or the maximum late charge assessable under the laws of the state in which the Beehive Homes location is situated.
The franchise royalty commences on the earlier of two conditions: either the first day of the first full calendar month following the date the home reaches 50% occupancy, or the first day of the sixth full calendar month following the date of opening of the home. This means a new Beehive Homes franchisee will not be required to pay royalties until one of these conditions is met, providing some initial financial relief during the startup phase. Understanding these payment terms and potential penalties is crucial for prospective franchisees to manage their finances effectively and maintain a good standing with Beehive Homes.