What is the interest rate applied to late Beehive Homes Franchise Royalty payments?
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, any unpaid Franchise Royalties or late charges will accrue interest from the due date. This interest rate will be the lesser of 18% per annum or the maximum rate legally allowed in the state where the Beehive Homes location is situated.
This means that if a franchisee fails to make timely Franchise Royalty payments, they will be subject to an interest charge on the outstanding amount. The specific interest rate applied will depend on both the franchisor's set rate of 18% and the legal limits imposed by the state in which the franchise operates; the lower of the two rates will be applied.
For a prospective Beehive Homes franchisee, this highlights the importance of ensuring timely Franchise Royalty payments to avoid incurring additional interest charges. Franchisees should be aware of their state's laws regarding maximum interest rates to understand the potential financial implications of late payments. This policy is fairly standard in franchising, as franchisors need to ensure they receive their royalty payments to maintain their own business operations.