What are the two conditions that trigger the full payment of the initial franchise fee for Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
nitial Franchise Fee. Franchisee hereby promises and agrees to pay to Franchisor an initial franchise fee (the "Initial Franchise Fee") of Seventy-Five Thousand Dollars ($75,000.00), payable one-third upon signing of this Agreement and the balance in full upon the earlier to occur of the following: (i) the funding of any construction loan for the Home; or (ii) the issuance of a building permit for the Home. The Initial Franchise Fee is fully earned and nonrefundable as and when paid as consideration for the expenses incurred by Franchisor in furnishing assistance and service to Franchisee and for Franchisor's lost or deferred opportunity to franchise to others. If the Franchise Fee is not paid in full on or before the date which is one year after the Effective Date of this Agreement, Franchisor may, in its sole discretion, terminate this Agreement, and no fees will be r
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, the initial franchise fee of $75,000 is paid in installments. One-third is due upon signing the agreement. The remaining balance becomes due based on whichever of two conditions occurs first.
The first condition that triggers the full payment is the funding of any construction loan for the Beehive Homes location. The second condition is the issuance of a building permit for the Beehive Homes location.
It's important to note that if the full initial franchise fee is not paid within one year of the agreement's effective date, Beehive Homes has the right to terminate the agreement. In this case, the franchisee will not receive a refund of any fees already paid. This highlights the importance of securing funding and obtaining the necessary building permits in a timely manner to avoid potential termination and loss of investment.