To whom is the Royalty fee paid for a Beehive Homes franchise?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount of Fee | When Due | To Whom Paid |
|---|---|---|---|
| Royalty (2) | 5% of Gross Revenues | monthly | US |
| Training (3) | not less than $300 per day inclusive | when incurred | US |
| Consultation After | not less than $300 per day | when negotiated | US |
| Opening (4) | inclusive | ||
| Audit Fees (5) | actual cost | when incurred | Third Parties |
| Transfer Fee (6) | $2,500 or $15,000 | pay at transfer | US |
| Additional Transfer | 10 times calculated annual | pay at transfer | US |
| Fee (6) | Franchise Royalties | ||
| Transfer | 6% of total price | pay at transfer | US |
| Commission (6) | |||
| Penalty Fee (2) | $100 per occurrence | upon demand | US |
| Late Charge (2) | 10% of late payment | upon demand | US |
| Interest Charge (2) | 18% per annum on past due royalties | upon demand | US |
| Examination Fee (2) | actual cost | upon demand | 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 is paid to 'US,' which refers to the franchisor. The royalty is 5% of Gross Revenues, and it is due monthly. The FDD outlines other fees, including training fees of not less than $300 per day, consultation fees of not less than $300 per day, transfer fees of $2,500 or $15,000, and a penalty fee of $100 per occurrence. These fees, like the royalty, are also paid to Beehive Homes.
It is important to note that the FDD also mentions audit fees, which are paid to third parties. Additionally, the franchisee may incur costs for training, consultation, and examination fees under certain circumstances. These fees are uniformly imposed on all franchisees.
Prospective franchisees should carefully review Item 6 of the FDD to understand all the fees they will be required to pay to Beehive Homes and third parties. Understanding the payment schedule and potential penalties for late payments is also crucial for managing the financial aspects of the franchise.