Do all Beehive Homes franchisees pay the same initial franchise fees?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU must pay an initial franchise fee of $75,000 for the first franchise. The initial franchise fee includes all fees and payments for services or goods received from US before YOUR franchise opens. This initial franchise fee is payable one-third (1/3) upon the signing of the Franchise Agreement and the balance in full upon the earlier of (i) funding of a construction loan for the Home, or (ii) issuance of a building permit for the Home. If the initial franchise fee is not paid in full on or before the date which is one year after the date of the Franchise Agreement, WE, in our sole discretion, may terminate the Franchise Agreement, and no fees will be refunded to YOU. However, franchises in some states may be subject to special payment terms.
YOU may purchase additional franchises, with the approval of the Franchisor, by paying a reduced initial franchise fee of $50,000.00 per franchise. This initial franchise fee for additional franchises is payable in full upon the signing of the franchise agreement for the additional franchise.
All franchisees pay the same initial franchise fees. All franchise fees are nonrefundable.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the initial franchise fee structure varies depending on whether it is for the first franchise or for additional franchises. For the first Beehive Homes franchise, the initial fee is $75,000. However, if a franchisee purchases additional franchises, with the franchisor's approval, the initial franchise fee is reduced to $50,000 per additional franchise. Therefore, not all franchisees pay the same initial franchise fee.
The initial franchise fee for the first franchise is payable in installments: one-third upon signing the Franchise Agreement and the balance upon the earlier of funding a construction loan or issuance of a building permit. The initial franchise fee for additional franchises is payable in full upon signing the franchise agreement for the additional franchise. If the initial franchise fee is not paid in full within one year of the Franchise Agreement date, Beehive Homes may terminate the agreement, and no fees will be refunded.
It is important to note that while the initial franchise fee differs for subsequent franchises, all franchisees are subject to the same royalty fee of 5% of Gross Revenues on each franchise owned. Additionally, other fees such as transfer fees ($2,500.00 for certain Permitted Transfers or $15,000.00 for certain approved transfers) and audit fees are uniformly imposed on all Beehive Homes franchisees. Understanding the initial fee structure, payment terms, and other associated fees is crucial for prospective franchisees to accurately assess their initial investment and ongoing financial obligations.