For a Beehive Homes franchise in Virginia, what condition must be met before the initial franchise fee is paid?
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, a Virginia addendum and amendment to the franchise agreement stipulate that franchisees do not have to pay the initial franchise fee until Beehive Homes has completed its pre-opening obligations under the Franchise Agreement. This requirement is put in place by the Virginia Retail Franchising Act. This condition supersedes any conflicting information presented in the standard franchise agreement.
This means that for a Beehive Homes franchise in Virginia, the franchisee benefits from not having to pay the initial franchise fee upfront. Typically, the initial franchise fee is paid, at least in part, upon signing the agreement. This Virginia addendum protects the franchisee by ensuring that Beehive Homes fulfills its obligations before receiving the initial fee.
Prospective franchisees should carefully review the specific pre-opening obligations outlined in the Franchise Agreement to understand exactly what Beehive Homes must complete before the initial franchise fee is due. This ensures clarity and avoids potential disputes regarding when the fee becomes payable. Franchisees should also consult with a legal professional to fully understand their rights and obligations under Virginia law.