What are the primary revenue streams for Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's primary revenue streams are from initial franchise fees and monthly royalty fees charged to franchise owners. Royalty fees are based on a percentage of gross receipts collected by the franchisees and will fluctuate directly with the level of sales generated by franchisees. Franchise fees are one-time payments at the initiation of a franchise agreement and can vary greatly from year-to-year depending on the number of franchised locations that are opened.
The Company derives revenue from nonrefundable transfer fees, which are charged to existing franchisees when they want to transfer their franchise license to another franchisee. The nonrefundable transfer fee is reimbursement to the Company for legal, accounting, credit, and investigation expenses incurred in support of facilitating the transfer. These fees are earned and recognized at the time of the transfer.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the company's primary revenue streams are derived from initial franchise fees and ongoing monthly royalty fees collected from its franchise owners. The royalty fees are calculated as a percentage of the gross receipts generated by the franchisees, meaning that Beehive Homes' revenue from this source is directly linked to the sales performance of its franchisees. Initial franchise fees are one-time payments made when a new franchise agreement is initiated. The amount of these fees can vary significantly from year to year, depending on the number of new franchised locations that open. For the first franchise, the initial fee is $75,000, and it is $50,000 for each subsequent franchise. These fees are non-refundable.
In addition to these primary revenue streams, Beehive Homes also generates revenue from nonrefundable transfer fees. These fees are charged to existing franchisees who wish to transfer their franchise license to another franchisee. The transfer fee serves as reimbursement to Beehive Homes for the expenses it incurs in facilitating the transfer, including legal, accounting, credit, and investigation costs. These fees are recognized as revenue at the time the transfer is completed.
For a prospective Beehive Homes franchisee, this information highlights the importance of both initial investment (the franchise fee) and ongoing performance (which determines royalty payments) in the financial relationship with the franchisor. It also indicates that franchise transfers can generate additional revenue for Beehive Homes, which may incentivize them to support such transactions.