When does the Beehive Homes franchise royalty payment obligation commence?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
eding 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 obligation begins on the earlier of two conditions. The first condition is the first day of the first full calendar month following the date the Beehive Homes location reaches 50% occupancy. The second condition is the first day of the sixth full calendar month following the date of opening of the Home.
Beehive Homes requires franchisees to pay a franchise royalty of 5% of gross revenues. Franchisees must pay this royalty 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.
To ensure accurate royalty payments, Beehive Homes requires franchisees to submit a Monthly Revenues Report. This report details the financial activity of the Home for the preceding month, including gross revenues, monies received, services performed, and any other financial information Beehive Homes may reasonably require. If a franchisee fails to submit the Monthly Revenues Report by the 10th of each month, Beehive Homes will assess a late charge of $100 for each late report. Additionally, if the franchisee fails to pay any franchise royalty when due, a one-time late charge will be assessed, equal to the lesser of 10% of the royalty due or the maximum late charge permitted under the laws of the state in which the Home is located.