How often must the Beehive Homes Franchisee pay the 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. For purposes of this Agreement, such information shall be referred to as the "Monthly Revenues Report."
- (b) The Franchise Royalty shall be due and payable on the same date that the corresponding Monthly Revenues Report is due, and shall be paid concurrently with the submission of the corresponding Monthly Revenues Report.
- (c) If the Franchisee fails to deliver the required Monthly Revenues Reports to Franchisor on or before the 10th day of each month, a late charge of $100.00 shall be assessed for each Monthly Revenues Report which is not timely filed.
- (d) If the Franchisee fails to pay any Franchise Royalty when due, Franchisee shall be assessed a one-time late charge equal to the lesser of ten percent (10%) of the Franchise Royalty due or, if less, the maximum late charge assessable under the laws of the state in whic
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are required to pay a franchise royalty fee monthly. This royalty is 5% of the Gross Revenues, and it must be paid on or before the 10th day of each calendar month, based on the Gross Revenues from the previous month.
Beehive Homes franchisees must also submit a Monthly Revenues Report to the franchisor by the 10th day of each month, detailing the financial activity of the Home for the preceding month. This report should include Gross Revenues, all monies received or accrued, all sales or other services performed, and any other financial information reasonably required by Beehive Homes. The Franchise Royalty payment is due at the same time as this report.
If a Beehive Homes franchisee fails to submit the Monthly Revenues Report on time, a late charge of $100.00 will be assessed for each late report. Additionally, if the Franchise Royalty payment is not made when due, a one-time late charge will be assessed. This late charge is the lesser of 10% of the Franchise Royalty due or the maximum late charge allowed by the laws of the state in which the Home is located.
The Franchise Royalty payments begin on the earlier of two dates: either the first day of the first full calendar month after the Home reaches 50% occupancy, or the first day of the sixth full calendar month following the Home's opening. Gross Revenues, for royalty calculation purposes, include all receipts of any kind received by the franchisee in connection with the operation, excluding sales or use taxes paid to a governmental taxing authority.