When is the initial franchise fee due for a Beehive Homes franchise in Illinois?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document to the contrary, the following provisions of the Illinois Franchise Disclosure Act ("Act") shall apply to any franchise located in the State of Illinois, which shall control to the extent of any inconsistency:
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- Payment of Initial Franchise Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced business operations. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial status.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the standard payment schedule for the initial franchise fee does not apply to franchises located in Illinois. Typically, the initial franchise fee is $75,000, with one-third due upon signing the agreement and the balance due upon the earlier of the funding of a construction loan or the issuance of a building permit.
However, for Beehive Homes franchises in Illinois, the payment of the initial franchise fee is deferred. This means that franchisees in Illinois are not required to pay the initial franchise fee until Beehive Homes has fulfilled its initial obligations to the franchisee and the franchisee has commenced business operations.
This deferral is a specific financial assurance requirement imposed by the Office of the Illinois Attorney General due to Beehive Homes' financial status. This offers a significant benefit to franchisees in Illinois, as it reduces their upfront financial risk and ensures that Beehive Homes is committed to providing the necessary support before receiving the franchise fee.