To whom does Beehive Homes pay a franchise royalty?

According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is required to pay a franchise royalty to the franchisor. Specifically, in addition to the initial franchise fee, the franchisee must pay Beehive Homes a franchise royalty, which is calculated as five percent of the gross revenues generated by the Beehive Homes location.

The franchise royalty is an ongoing fee that franchisees pay to Beehive Homes for the continued use of the Beehive Homes system, brand name, and operational support. This fee structure is typical in franchising, as it allows the franchisor to receive a portion of the revenue generated by each franchise location. The royalty payments are essential for Beehive Homes to maintain and improve its services, support its franchisees, and continue to develop the brand.

The FDD states that 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. This means that franchisees must accurately track their gross revenues and remit the royalty payment to Beehive Homes in a timely manner to avoid penalties or potential breach of the franchise agreement. Prospective franchisees should carefully consider this ongoing expense when evaluating the financial viability of a Beehive Homes franchise.