What was the receipt amount for Beehive Homes franchisee number 2025?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
– Revenue Recognition
The Company enters into franchise agreements with franchisees. The Company provides the nonexclusive right and sub-license to use the names, marks, trade secrets, and copyright material under these agreements. The Company provides guidance on selecting a potential architect that could be used in the franchisee's area. In addition, the Company provides pre-opening training and reasonable opening supervision and operations assistance. The franchise agreements require the franchisee to pay an initial, non-refundable fee of $75,000 for the first franchise, $50,000 for each subsequent franchise and a continuing fee based upon a percentage of sales. Direct costs of sales and servicing of franchise agreements are charged to general and administrative expenses as incurred. Accounting Standards Codification Topic 606 under U.S. GAAP (ASC 606) provides that revenues are to be recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration expected to be received for those goods or services. The standard does not change the recognition of royalties from homes operated by franchisees, which are recognized at the time the underlying sales occur. The standard does change the timing in which the Company recognizes initial fees.
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 loca
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
I am unable to provide the receipt amount for Beehive Homes franchisee number 2025, as this specific information is not present in the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do discuss the Exhibit J Receipt, which confirms that a prospective franchisee received the FDD, but it does not contain any financial details related to individual franchisees or their receipts.
However, the FDD excerpts do provide some financial context for potential Beehive Homes franchisees. The document mentions that franchisees must pay an initial, non-refundable fee of $75,000 for the first franchise and $50,000 for each subsequent franchise. Additionally, franchisees are required to pay a continuing fee based on a percentage of their sales. These royalty fees are a percentage of gross receipts collected by the franchisees and will fluctuate directly with the level of sales generated.
To obtain the receipt amount for a specific franchisee, such as franchisee number 2025, a prospective franchisee should directly request this information from Beehive Homes. This request could be part of a broader due diligence process to understand the financial performance of existing franchisees. It is important to note that the franchisor may not disclose specific financial information for individual franchisees due to privacy and competitive concerns.