Does the initial Beehive Homes franchise fee cover any goods received before the franchise opens?
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 of $75,000 for the first franchise covers all fees and payments for services or goods received from Beehive Homes before the franchise opens. This fee is payable in installments: one-third upon signing the Franchise Agreement, and the balance upon the earlier of funding of a construction loan or issuance of a building permit for the Home.
Beehive Homes may terminate the Franchise Agreement if the initial franchise fee is not paid in full within one year of the agreement date. In such a case, no fees will be refunded to the franchisee. However, the FDD notes that franchises in some states may be subject to special payment terms, which could alter the standard payment schedule.
For franchisees purchasing additional Beehive Homes franchises, a reduced initial franchise fee of $50,000 is required for each additional franchise. This fee is payable in full upon signing the franchise agreement for the additional franchise. All franchise fees are nonrefundable, regardless of whether it is for the first or subsequent franchises.
Prospective franchisees should take note of the payment schedule and ensure they can meet the financial obligations within the specified time frame to avoid potential termination of the agreement and loss of the initial fees. It would be prudent to clarify any special payment terms applicable to their specific state to avoid any misunderstandings.