What must a Beehive Homes franchisee in Illinois do before the initial franchise fee is paid?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of Initial Franchise Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial status.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Illinois franchisees benefit from a specific legal protection regarding the initial franchise fee. Unlike the standard agreement, franchisees in Illinois are not required to pay the initial franchise fee of $75,000 upfront.
Instead, the payment of the initial franchise fee is deferred until Beehive Homes has fulfilled its initial obligations to the franchisee. Furthermore, the franchisee must have commenced business operations before the initial franchise fee becomes due. This stipulation is a direct result of a financial assurance requirement imposed by the Illinois Attorney General's office, reflecting a safeguard due to Beehive Homes' financial status.
This addendum provides a significant advantage for prospective Beehive Homes franchisees in Illinois, reducing their initial financial risk. It ensures that franchisees only pay the fee after Beehive Homes has provided the necessary support and the business is up and running. This arrangement offers greater security and aligns the interests of both the franchisor and franchisee in establishing a successful Beehive Homes location.