How is 'Gross Revenues' defined for the purpose of calculating the Beehive Homes franchise royalty?

According to Beehive Homes' 2025 Franchise Disclosure Document, "Gross Revenues" for royalty calculation includes all gross receipts received by the franchisee, directly or indirectly, from operating the franchised business, the Home, and providing services. The only exception to this definition is the amount of sales or use taxes that are levied by a governmental taxing authority on the sale of goods or services and actually paid to that taxing authority.

In practical terms, this means that Beehive Homes franchisees must remit 5% of nearly all income they generate through the Beehive Homes business to the franchisor as a royalty. This includes revenue from residential care, assisted living, rehabilitation, memory care, and/or hospice care services. Franchisees must keep careful records of all income and sales tax payments to accurately calculate and report Gross Revenues each month.

Franchisees are required to submit a Monthly Revenues Report to Beehive Homes by the 10th day of each month, detailing the financial activity of the Home for the preceding month. This report must include Gross Revenues, all monies received or accrued, all sales or other services performed, and any other financial information reasonably required by Beehive Homes. Failure to submit the Monthly Revenues Report on time results in a late charge of $100.00 for each late report. Additionally, failure to pay the franchise royalty when due will result in 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 which the Home is located.