What is the reduced initial franchise fee for additional Beehive Homes franchises?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU must pay an initial franchise fee of $75,000 for the first franchise. The initial franchise fee includes all fees and payments for services or goods received from US before YOUR franchise opens. This initial franchise fee is payable one-third (1/3) upon the signing of the Franchise Agreement and the balance in full upon the earlier of (i) funding of a construction loan for the Home, or (ii) issuance of a building permit for the Home. If the initial franchise fee is not paid in full on or before the date which is one year after the date of the Franchise Agreement, WE, in our sole discretion, may terminate the Franchise Agreement, and no fees will be refunded to YOU. However, franchises in some states may be subject to special payment terms.
YOU may purchase additional franchises, with the approval of the Franchisor, by paying a reduced initial franchise fee of $50,000.00 per franchise. This initial franchise fee for additional franchises is payable in full upon the signing of the franchise agreement for the additional franchise.
All franchisees pay the same initial franchise fees. All franchise fees are nonrefundable.
Source: Item 5 — INITIAL FEES (FDD page 11)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees who purchase additional Beehive Homes franchises may be eligible for a reduced initial franchise fee. The initial franchise fee for the first franchise is $75,000. However, with the Franchisor's approval, franchisees can purchase additional franchises for a reduced initial franchise fee of $50,000 per franchise.
This reduced fee for additional franchises can significantly lower the financial barrier for existing franchisees looking to expand their operations. It incentivizes successful franchisees to reinvest in the Beehive Homes system, potentially leading to more rapid growth for the franchise as a whole. However, it is important to note that this reduced fee is subject to approval by Beehive Homes, meaning that not all requests for additional franchises will necessarily be granted.
The FDD specifies that the initial franchise fee for additional franchises is payable in full upon signing the franchise agreement for the additional franchise. This differs from the payment schedule for the first franchise, where the fee can be paid in installments. All franchise fees are nonrefundable, regardless of whether they are for the initial franchise or additional franchises. Prospective franchisees should consider these payment terms and the nonrefundable nature of the fees when making their investment decisions.