What is the late charge for a Beehive Homes royalty payment not paid when due?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
A Royalty which is not paid when due will bear a late charge equal to ten percent (10%) of the past due balance.
In addition to late charges, delinquent payments will be assessed interest at eighteen percent (18%) per annum or any lower maximum rate of interest allowable under the laws of the state in which YOUR Bee Hive Home is located from the due date until the date paid.
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a royalty payment not paid when due will incur a late charge. This late charge is equal to ten percent (10%) of the past due balance. In addition to the late charge, Beehive Homes assesses interest on delinquent payments at a rate of eighteen percent (18%) per annum, or the maximum allowable rate under state law where the Beehive Homes location is situated, calculated from the due date until the payment is made.
For a prospective Beehive Homes franchisee, this means that failing to make timely royalty payments can result in significant additional costs. For example, if a royalty payment of $1,000 is late, a 10% late charge would add $100 to the amount owed. Furthermore, the 18% annual interest would continue to accrue on the unpaid balance until it is paid in full, increasing the financial burden.
It is important for franchisees to prioritize timely royalty payments to avoid these charges. Franchisees should also be aware of the specific laws in their state regarding maximum interest rates, as this could affect the total amount of interest charged on late payments. Maintaining accurate financial records and adhering to the franchisor's reporting instructions are crucial for ensuring timely and accurate royalty payments, and avoiding penalties. The FDD also mentions a $100 penalty for not furnishing the required data in the required manner by the 10th of the month.