How often is the interest payable on shareholder receivables for Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
non-interest bearing.
The Company has shareholder receivables totaling $74,938, $12,084, and $27,474 for the years ended December 31, 2024, 2023, and 2022, respectively. The unpaid balance of the receivable bears interest at a rate of 4.19% and is payable annually. The receivab
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the interest on shareholder receivables is payable annually. The specific interest rate cited is 4.19%. This means that Beehive Homes, Inc. has extended credit to its shareholders, and the shareholders are obligated to pay interest on the outstanding balance each year. The receivables themselves are due on demand, meaning Beehive Homes can request immediate repayment of the principal at any time, in addition to the annual interest payments.
For a prospective franchisee, this information provides insight into the financial dealings between Beehive Homes and its shareholders. While it doesn't directly impact the franchisee's operations, it does offer a glimpse into the company's financial management practices and related-party transactions. Understanding these relationships can help a franchisee assess the overall financial health and stability of the franchisor.
It's important to note that the amounts of shareholder receivables have varied over the past three years, as detailed in the FDD. Reviewing these trends can provide a more complete picture of the company's financial interactions with its shareholders. A potential franchisee might consider asking Beehive Homes about the nature of these receivables and the reasons for their fluctuations to gain a better understanding of the company's financial practices.