What is the frequency of the royalty payments required for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU are required to pay a royalty to US equal to five percent (5%) of Gross Revenues on each franchise owned. Gross Revenues is defined in the Franchise Agreement, Article IV, paragraph 4.3, as being all gross receipts received or receivable less sales or use tax. Each month YOU will furnish an accurate electronic report to US, according to OUR reporting instructions, containing this information. This data will be required from YOU by the 10th of the month following each monthly reporting period. (If YOU don't furnish the date in the required manner by the 10th of the month, YOU must pay a $100.00 penalty.) The royalty fee, as calculated from the date you report, is to be paid on or before the 10th day of each calendar month. Royalties are not refundable. A Royalty which is not paid when due will bear a late charge equal to ten percent (10%) of the past due balance. In addition to late charges, delinquent payments will be assessed interest at eighteen percent (18%) per annum or any lower maximum rate of interest allowable under the laws of the state in which YOUR Bee Hive Home is located from the due date until the date paid. WE have the right to examine YOUR books and records. If this examination reveals a discrepancy of two percent (2%) or more, then YOU will reimburse US for the cost of the examination.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are required to pay a royalty fee equal to five percent (5%) of Gross Revenues. These royalty payments are due monthly. Each month, the franchisee must furnish an accurate electronic report to Beehive Homes, according to their reporting instructions, containing the necessary information to calculate the royalty fee. This report is due by the 10th of the month following each monthly reporting period. The royalty fee, as calculated from the report, is also due on or before the 10th day of each calendar month.
If a franchisee fails to furnish the required data in the specified manner by the 10th of the month, they will incur a $100.00 penalty. Furthermore, any royalty payment not paid when due will be subject to a late charge equal to ten percent (10%) of the past due balance. In addition to late charges, delinquent payments will accrue interest at a rate of eighteen percent (18%) per annum, or the maximum rate allowable under the laws of the state in which the Beehive Homes location is situated, from the due date until the date the payment is made.
Beehive Homes retains the right to examine a franchisee's books and records. If this examination reveals a discrepancy of two percent (2%) or more in the reported Gross Revenues, the franchisee will be responsible for reimbursing Beehive Homes for the cost of the examination. This provision incentivizes franchisees to maintain accurate records and report their Gross Revenues honestly. The monthly royalty payment structure is a common practice in the franchise industry, allowing franchisors to receive a consistent stream of income and support their franchisees with ongoing services and resources.