What happens if a Beehive Homes franchisee fails to pay the Franchise Royalty when due?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) If the Franchisee fails to pay any Franchise Royalty when due, Franchisee shall be assessed 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.
(e) In addition to the one-time late charge referred to in subsection (d) above, all Franchise Royalties and late charges not paid when due shall bear interest from such due date of payment, both before and after judgment at the rate equal to the lesser of eighteen percent (18%) per annum or the maximum rate allowed under the laws of the state in which the Home is located.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee fails to pay any Franchise Royalty when due, they will be assessed a one-time late charge. This late charge is equal to the lesser of ten percent (10%) of the Franchise Royalty due or the maximum late charge assessable under the laws of the state in which the Home is located.
In addition to this one-time late charge, all Franchise Royalties and late charges not paid when due will bear interest from the due date of payment. This interest will be applied both before and after any judgment at a rate equal to the lesser of eighteen percent (18%) per annum or the maximum rate allowed under the laws of the state in which the Beehive Homes location is situated.
This means that a Beehive Homes franchisee needs to prioritize timely royalty payments to avoid incurring these additional costs. The specific amount of the late charge and interest rate could vary depending on state laws, so franchisees should be aware of the regulations in their area. Failing to meet these financial obligations could potentially lead to further action from Beehive Homes, as outlined elsewhere in the Franchise Agreement.