Is the Beehive Homes royalty fee refundable?

According to Beehive Homes' 2025 Franchise Disclosure Document, the royalty fees are not refundable. Franchisees are required to pay a royalty fee equal to 5% of gross revenues for each franchise owned. This royalty is due on or before the 10th day of each calendar month. Failure to furnish the required data by the 10th of the month results in a $100 penalty.

Late royalty payments incur a 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, calculated from the due date until the payment date. Beehive Homes retains the right to examine a franchisee's books and records, and if a discrepancy of 2% or more is discovered, the franchisee must cover the examination costs.

Given that the royalty fees are non-refundable, prospective Beehive Homes franchisees should carefully consider their projected revenues and ensure they can consistently meet this ongoing financial obligation. Understanding the terms for late payments and potential audit costs is also crucial for managing the financial aspects of the franchise.