In Virginia, when does Beehive Homes require payment of the initial franchise fee from franchisees?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA AMENDMENT TO FRANCHISE AGREEMENT
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document to the contrary, the following provisions of the Virginia Retail Franchising Act ("Act") shall apply to any franchise located in the State of Virginia, which shall control to the extent of any inconsistency:
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- Franchise Fee. Payment of the initial Franchise Fee and other initial payments owed by franchisees to the franchisor shall be deferred until the franchisor has completed its preopening obligations under the Franchise Agreement.
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- Other Provisions Unaffected: All other terms and provisions contained in the Franchise Agreement shall remain in full force and effect, except to the extent specifically modified herein.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, franchisees in Virginia are not required to pay the initial franchise fee until Beehive Homes has completed its pre-opening obligations under the Franchise Agreement. This is due to the Virginia Retail Franchising Act. This stipulation supersedes any conflicting terms in the standard Franchise Agreement.
This deferral is a benefit to franchisees in Virginia, as it allows them to delay payment of the $75,000 initial franchise fee until Beehive Homes has fulfilled its pre-opening responsibilities. This protects the franchisee's investment by ensuring that Beehive Homes provides the necessary support and services before the franchisee is obligated to pay the fee.
It is important for prospective Beehive Homes franchisees in Virginia to understand this amendment and how it affects the payment schedule for the initial franchise fee. They should carefully review the Virginia Amendment to the Franchise Agreement and discuss any questions or concerns with Beehive Homes before signing the agreement.