What is the method of payment for the Beehive Homes Franchise Royalty?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchise Royalty. In addition to the Initial Franchise Fee, Franchisee promises and agrees to pay to Franchisor a franchise royalty (the "Franchise Royalty") in the amount of five percent (5%) of the Gross Revenues. The Franchise Royalty shall be paid monthly on or before the 10th day of each calendar month based upon the Gross Revenues of the preceding calendar month. The Franchise Royalty will commence on the earlier of (i) the first day of the first full calendar month following the date on which the Home reaches a 50% occupancy; or (ii) the first day of the sixth full calendar month following the date of opening of the Home. For purposes of determining the Franchise Royalty, "Gross Revenues" is defined to be the gross receipts of every kind and nature whatsoever received by Franchisee directly or indirectly in connection with the operation of the franchised business, the Home and/or providing of services, excepting only the amount of sales or use taxes levied upon the sale of goods or services by a governmental taxing authority and actually paid to said taxing authority.
- 4.4. Determination and Method of Payment of Franchise Royalty. The calculation and payment of the Franchise Royalty specified in Section 4.3 above shall be made as follows:
- (a) On or before the 10th day of each calendar month Franchisee shall provide to Franchisor a report the financial activity of the Home for the immediately preceding calendar month to Franchisor. The report shall show Gross Revenues, all monies received or accrued, all sales or other services performed, and such other information concerning the financial affairs of Franchisee as Franchisor may reasonably require.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Franchise Royalty, set at five percent (5%) of Gross Revenues, must be paid monthly. Specifically, it is due on or before the 10th day of each calendar month, based on the Gross Revenues from the preceding month.
Along with the royalty payment, franchisees must submit a Monthly Revenues Report to Beehive Homes, detailing the Home's financial activity for the previous month. This report should include Gross Revenues, all monies received or accrued, services performed, and any other financial information Beehive Homes reasonably requires. The Franchise Royalty payment is due concurrently with the submission of this report.
Beehive Homes imposes penalties for late submissions or payments. A $100 late charge is assessed for each Monthly Revenues Report not filed by the 10th of the month. Additionally, if the Franchise Royalty payment is late, a one-time late charge will be assessed, equal to the lesser of ten percent (10%) of the royalty due or the maximum late charge permissible under the laws of the state where the Home is located. Franchisees should ensure timely reporting and payments to avoid these additional charges.