When is the initial franchise fee due for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | High | Low | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|---|
| Initial Franchise Fee | $75,000 (1) | $75,000 | Lump Sum | One-third (1/3) upon signing and balance upon earlier of financing or permitting | US |
Source: Item 7 — YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the initial franchise fee of $75,000 is due in two installments. One-third of the fee is payable upon signing the franchise agreement. The remaining balance is due upon the earlier of securing financing or obtaining the necessary permits to begin construction.
This payment schedule means a prospective Beehive Homes franchisee needs to have approximately $25,000 (one-third of $75,000) available at the time of signing the agreement. The remaining $50,000 must be ready when financing is secured or when permits are approved, whichever comes first. This could potentially put pressure on the franchisee to finalize financing or permitting quickly to avoid delays.
It is important to note that this initial franchise fee is non-refundable, as stated elsewhere in the FDD. Therefore, a prospective franchisee should carefully consider their financial situation and the likelihood of obtaining financing and permits before signing the franchise agreement and paying the initial one-third installment. Understanding the local permitting processes and timelines, as well as having a solid financing plan in place, is crucial for managing this aspect of the initial investment.