factual

May Bee Organized administer System-wide marketing funds?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Administration of Marketing Funds We may administer and manage System-wide marketing funds comprised of a Brand Development Fund and/or advertising cooperative. (Franchise Agreement, Article 9);

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–29)

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized may administer and manage system-wide marketing funds. These funds can be comprised of a Brand Development Fund and/or advertising cooperative.

The Brand Development Fund is controlled and administered by Bee Organized. Franchisees must contribute a monthly sum to the Brand Development Fund, not exceeding 2% of gross sales for annual gross sales up to $500,000, and 1% of gross sales for annual gross sales over $500,000, with a maximum of $20,000 per year. Bee Organized may use this fund for various marketing and development activities, including market studies, research, advertising, and public relations. While Bee Organized and its affiliates may contribute to the Brand Development Fund, they are not required to do so.

Bee Organized is not required to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the fund. The Brand Development Fund will not be used to directly promote an individual franchisee's Bee Organized Business or its specific marketing area. However, Bee Organized will provide an annual unaudited accounting of how the funds were spent, available to franchisees no more than once every 12 months.

Bee Organized also possesses the right to authorize, establish, designate, and de-authorize local or regional advertising cooperatives. If a cooperative is established in a market that includes a franchisee's Bee Organized Business, the franchisee must contribute to the cooperative as determined by its members. Members of the cooperative are responsible for administering it, including determining contribution amounts and marketing expenditures. Bee Organized may require cooperative decisions to be based on a simple majority vote of franchisee members, with a quorum of at least 25%.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.