When is the Royalty fee due for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
- (2) Royalty.
YOU are required to pay a royalty to US equal to five percent (5%) of Gross Revenues on each franchise owned.
Gross Revenues is defined in the Franchise Agreement, Article IV, paragraph 4.3, as being all gross receipts received or receivable less sales or use tax.
Each month YOU will furnish an accurate electronic report to US, according to OUR reporting instructions, containing this information.
This data will be required from YOU by the 10th of the month following each monthly reporting period. (If YOU don't furnish the date in the required manner by the 10th of the month, YOU must pay a $100.00 penalty.) The royalty fee, as calculated from the date you report, is to be paid on or before the 10th day of each calendar month.
Royalties are not refundable.
A Royalty which is not paid when due will bear a late charge equal to ten percent (10%) of the past due balance.
In addition to late charges, delinquent payments will be assessed interest at eighteen percent (18%) per annum or any lower maximum rate of interest allowable under the laws of the state in which YOUR Bee Hive Home is located from the due date until the date paid.
WE have the right to examine YOUR books and records.
If this examination reveals a discrepancy of two percent (2%) or more, then YOU will reimburse US for the cost of the examination.
| Type of Fee (1) | Amount of Fee | When Due | To Whom Paid |
|---|---|---|---|
| Royalty (2) | 5% of Gross Revenues | monthly | US |
Source: Item 6 — OTHER FEES (FDD pages 11–13)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the royalty fee, calculated from the franchisee's report, is due on or before the 10th day of each calendar month. Franchisees are required to furnish an accurate electronic report containing gross revenue information to Beehive Homes by the 10th of the month following each monthly reporting period. Failure to submit the data in the required manner by the 10th results in a $100 penalty. The royalty fee is 5% of Gross Revenues. Gross Revenues is defined in the Franchise Agreement, Article IV, paragraph 4.3, as being all gross receipts received or receivable less sales or use tax.
Late royalty payments incur a late charge of 10% of the past due balance. Additionally, delinquent payments are assessed interest at 18% per annum, or the maximum allowable rate under state law where the Beehive Homes location is situated, calculated from the due date until the payment date. Beehive Homes retains the right to examine the franchisee's books and records, and if an examination reveals a discrepancy of 2% or more, the franchisee will reimburse Beehive Homes for the cost of the examination.
The table in Item 6 of the Beehive Homes 2025 FDD also summarizes when the royalty fee is due. The royalty fee is 5% of gross revenues and is due monthly to Beehive Homes.