What is the Late Charge for late payments for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount of Fee | When Due | To Whom Paid |
|---|---|---|---|
| Royalty (2) | 5% of Gross Revenues | monthly | US |
| Training (3) | not less than $300 per day inclusive | when incurred | US |
| Consultation After | not less than $300 per day | when negotiated | US |
| Opening (4) | inclusive | ||
| Audit Fees (5) | actual cost | when incurred | Third Parties |
| Transfer Fee (6) | $2,500 or $15,000 | pay at transfer | US |
| Additional Transfer | 10 times calculated annual | pay at transfer | US |
| Fee (6) | Franchise Royalties | ||
| Transfer | 6% of total price | pay at transfer | US |
| Commission (6) | |||
| Penalty Fee (2) | $100 per occurrence | upon demand | US |
| Late Charge (2) | 10% of late payment | upon demand | US |
| Interest Charge (2) | 18% per annum on past due royalties | upon demand | US |
| Examination Fee (2) | actual cost | upon demand | US |
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee will incur a late charge of 10% of the past due balance for royalty payments not made on time. In addition to this late charge, Beehive Homes also assesses an interest charge of 18% per annum on any past due royalties.
This means that if a Beehive Homes franchisee is late on their royalty payment, they will be charged both a percentage of the late amount and an annual interest rate on the outstanding balance. These charges are in addition to the original royalty fee, which is 5% of gross revenues.
It is important for prospective Beehive Homes franchisees to understand these late payment penalties and ensure that they have sufficient cash flow to make royalty payments on time. Failure to do so can result in significant additional costs and potential financial strain on the franchise. The FDD also specifies that these fees are uniformly imposed on all franchisees.