What is the penalty for failing to pay the Beehive Homes Franchise Royalty when due?

According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee fails to pay any Franchise Royalty when due, they will be assessed a one-time late charge. This charge is equal to the lesser of ten percent (10%) of the Franchise Royalty due or the maximum late charge assessable under the laws of the state in which the Home is located. This means the franchisee will pay either 10% of the unpaid royalty amount, or whatever the state law specifies as the maximum penalty, whichever is lower.

In addition to the one-time late charge, all Franchise Royalties and late charges not paid when due will bear interest from the due date. The interest rate will be 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. This interest applies both before and after any legal judgment related to the unpaid royalties and late charges.

For a prospective Beehive Homes franchisee, this means that failing to pay royalties on time can result in significant financial penalties. It's important to ensure timely payments to avoid these charges and maintain a good financial standing with Beehive Homes. Franchisees should be aware of both the Beehive Homes' late payment policies and the relevant state laws regarding maximum late charges and interest rates to fully understand the potential costs of late payments.