Are 'Advertising Cooperative' contributions included in the definition of 'Advertising Contributions' for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
"Advertising Contributions" means any and all obligations of Franchisee to contribute to and/or pay fees to Franchisor or Franchisor's affiliate or designees as set forth in this Agreement including, but not limited to, the Brand Development Fund Fees set forth in Article 9.A. of this Agreement and Advertising Cooperative contributions and contributions set forth in Article 9.C. of this Agreement.
"Advertising Cooperative" shall have the meaning defined and set forth in Article 9.C. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Advertising Cooperative contributions are included in the definition of 'Advertising Contributions'. The document defines 'Advertising Contributions' as any obligations of the franchisee to contribute or pay fees to Bee Organized, its affiliates, or designees. This includes, but is not limited to, Brand Development Fund Fees and Advertising Cooperative contributions.
This means that when a Bee Organized franchisee is calculating their total advertising contributions, they must include any payments made to the Advertising Cooperative. The Advertising Cooperative is a local or regional advertising group that Bee Organized may authorize within designated markets. If a franchisee's Bee Organized Business or Operating Territory is located within the geographic area of an Advertising Cooperative, the franchisee must participate in and contribute to it.
Franchisees should be aware that Bee Organized has the sole and exclusive right to designate any geographic area in which two or more Bee Organized Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. Franchisees are required to participate in and contribute to the Advertising Cooperative if their business is located within the designated area. This contribution counts toward the franchisee's minimum local marketing obligations.
Upon termination of the Franchise Agreement, franchisees are required to immediately pay Bee Organized all outstanding sums and fees, including Royalty Fees and Advertising Contributions. This underscores the importance of understanding all financial obligations, including those related to the Advertising Cooperative, throughout the term of the agreement.