What types of receivables does Beehive Homes have?

According to Beehive Homes' 2025 Franchise Disclosure Document, the company has extended credit to sub-franchisors, resulting in trade receivables. The concentration of these receivables is significant, with two customers accounting for a notable portion of the total.

Specifically, two customers accounted for 28% of trade receivables as of December 31, 2024, 38% as of December 31, 2023, and 28% as of December 31, 2022. Additionally, one customer accounted for 14% of Beehive Homes' total revenue for the year ended December 31, 2024. In the preceding years, two customers accounted for 30% and 32% of total revenues for the years ended December 31, 2023 and 2022, respectively.

This concentration of credit risk and revenue from a small number of customers means that Beehive Homes' financial stability is closely tied to the financial health and payment behavior of these sub-franchisors. A prospective franchisee should be aware of this dynamic, as it could indirectly affect the franchisor's ability to provide support and services to its franchisees. It would be prudent to inquire about the creditworthiness and payment history of these key sub-franchisors to assess the potential risk.