Does Bee Organized apply the same method to calculate the Initial Franchise Fee for all franchises?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
id="page-9-2">When you sign a Franchise Agreement you must pay to us a non-refundable initial franchise fee (the "Initial Franchise Fee"). The Initial Franchise Fee is $28,500 for a geographic area that operates as a single territory of approximately 40,000 to 50,000 Qualified Households (each a "Territory"). A Qualified Household is a singlefamily household where annual household income exceeds $100,000 (a "Qualified Household"). The Initial
Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises that we offer under this Disclosure Document, except as described below.
Multi-Territory and Multi-Franchise Discounts
Subject to market type, availability, and our discretion, at the time of signing your Franchise Agreement, you may request the right to purchase additional territories (each referred to as an "Additional Territory") to be added to your Operating Territory and operated under one Franchise Agreement. Each Additional Territory will be comprised of approximately 40,000 to 50,000 Qualified Households. Your first Territory and, if applicable, each Additional Territory is collectively referred to collectively as your "Territories" and, individually, as a "Territory." When purchasing Additional Territories, the following initial franchise fees shall apply:
| Total Territories Purchased | Cumulative Fee (Includes First Territory) | |
|---|---|---|
| 1 | $28,500 | $28,500 |
| 2 | $19,500 | $48,000 |
| 3 | $18,000 | $66,000 |
| 4 | $16,500 | $82,500 |
| 5 | $15,000 | $97,500 |
| 6 | $13,500 | $111,000 |
| 7 | $13,500 | $124,500 |
| 8 | $13,500 | $138,000 |
| 9 | $13,500 | $151,500 |
| 10 | $13,500 | $165,000 |
| 11 | $13,500 | $178,500 |
| 1 |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the method used to calculate the Initial Franchise Fee is generally uniform for all franchises. The standard Initial Franchise Fee is $28,500 for a single territory, which is defined as a geographic area containing approximately 40,000 to 50,000 Qualified Households, where a Qualified Household is one with an annual income exceeding $100,000.
However, Bee Organized offers discounts for franchisees who purchase multiple territories or enter into multiple Franchise Agreements simultaneously, subject to market availability and the company's discretion. These discounts alter the initial fee calculation. For instance, while the first territory costs $28,500, purchasing a second territory at the same time reduces the fee for that second territory to $19,500, bringing the cumulative fee for two territories to $48,000. The fee decreases further with each additional territory purchased concurrently.
The FDD provides a table illustrating these discounts, showing that the initial fee for additional territories decreases incrementally as more territories are purchased, up to 12 territories. For example, the fee for the sixth through twelfth territories is $13,500 each. These discounts are applicable if a franchisee elects to enter into multiple Franchise Agreements at the same time, again subject to market conditions and Bee Organized's approval.
Therefore, while the base initial franchise fee calculation is uniform, the actual fee paid can vary significantly based on the number of territories purchased and whether multiple franchise agreements are signed simultaneously. Prospective franchisees should carefully consider their expansion plans and discuss territory availability and discount options with Bee Organized to understand the potential initial investment.