What is the maximum interest rate allowed on 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, if a franchisee fails to pay their Franchise Royalties or any associated late charges on time, interest will accrue on the overdue amount. This interest will be calculated from the original due date. The interest rate applied will be the lesser of two options: either eighteen percent (18%) per annum, or the maximum interest rate legally permitted in the state where the Beehive Homes location is situated.
For a prospective Beehive Homes franchisee, this means that timely payment of Franchise Royalties is crucial to avoid incurring interest charges. The specific interest rate could vary depending on the state's laws, but it will never exceed 18% per year. Franchisees should be aware of their state's regulations regarding maximum interest rates to understand the potential financial implications of late payments.
This clause is fairly standard in franchise agreements. It incentivizes franchisees to manage their finances responsibly and meet their payment obligations promptly. Franchisees should factor in these potential interest charges when budgeting and planning their cash flow to ensure they can meet their financial commitments to Beehive Homes.