Is the interest applied to late Beehive Homes Franchise Royalty payments before and after judgment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, unpaid franchise royalties and late charges accrue interest from the due date, both before and after a judgment. The interest rate is the lesser of 18% per annum or the maximum rate allowed by the laws of the state where the Beehive Homes location is situated.
This means that if a franchisee fails to pay their franchise royalties on time, they will not only be assessed a one-time late charge, but will also be responsible for paying interest on the overdue amount. This interest continues to accrue even if Beehive Homes obtains a judgment against the franchisee for the unpaid royalties and charges.
For a prospective Beehive Homes franchisee, this highlights the importance of paying franchise royalties on time to avoid incurring additional charges and interest. Franchisees should be aware of the specific laws in their state regarding maximum allowable interest rates, as this could impact the amount of interest charged on late payments. The application of interest both before and after judgment is a standard practice in franchising, designed to incentivize timely payments and compensate the franchisor for the delay in receiving funds.