What is the required action for a Beehive Homes franchisee regarding the Franchise Royalty payment?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the Initial Franchise Fee, Franchisee promises and agrees to pay to Franchisor a franchise royalty (the "Franchise Royalty") in the amount of five percent (5%) of the Gross Revenues.
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.
The Franchise Royalty will commence on the earlier of (i) the first day of the first full calendar month following the date on which the Home reaches a 50% occupancy; or (ii) the first day of the sixth full calendar month following the date of opening of the Home.
For purposes of determining the Franchise Royalty, "Gross Revenues" is defined to be the gross receipts of every kind and nature whatsoever received by Franchisee directly or indirectly in connection with the operation of the franchised business, the Home and/or providing of services, ex
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees must pay a franchise royalty fee. This Franchise Royalty is 5% of the Gross Revenues. Franchisees are required to pay the Franchise Royalty monthly, specifically on or before the 10th day of each calendar month. This payment is based on the Gross Revenues from the preceding calendar month.
The Franchise Royalty payments begin on the earlier of two dates: either the first day of the first full calendar month after the Beehive Homes location reaches 50% occupancy, or the first day of the sixth full calendar month following the opening date of the Home. Gross Revenues include all gross receipts, regardless of their nature, received directly or indirectly in connection with the operation of the franchised business, the Home, and/or the provision of services.
This means that as a Beehive Homes franchisee, you will need to track your gross revenues carefully each month and remit 5% of that amount to Beehive Homes by the 10th of the following month. The start date for these payments is tied to either occupancy rate or a fixed time after opening, providing some flexibility during the initial ramp-up phase of the business. Understanding what constitutes 'Gross Revenues' is crucial for accurate royalty reporting and payment.