How is the Bee Organized Brand Development Fund Fee calculated?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisor will provide Franchisee with written notice of the percentage of Gross Sales that Franchisee is required to contribute to the Brand Development Fund.
Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing.
The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
- (3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof.
Without limiting the foregoing, the Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media;
- (4) Franchisee agrees that the purpose of the advertising, media, marketing and activities financed by the Brand Development Fund is and shall be for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks.
The Brand Development Fund will not be utilized to directly or indirectly market or promote the Franchised Business or, unless otherwise directed by Franchisor, in Franchisor's Reasonable Business Judgment, pay for media placements that may benefit or include any media market that includes Franchisee's Administrative Office or Operating Territory;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the Brand Development Fund Fee is calculated as a percentage of Gross Sales. Bee Organized will provide written notice to the franchisee specifying the percentage of Gross Sales that must be contributed to the Brand Development Fund. Once the franchisee receives this written notice, the designated percentage of Gross Sales will be applicable for each monthly accounting period during the term of the agreement. This percentage remains in effect until Bee Organized provides a new written notice with a different percentage.
The Brand Development Fund Fee is due on the date and according to the payment terms outlined for Royalty Fees in Article 5.B, or as otherwise specified by Bee Organized. This fee is paid to Bee Organized, which then manages the Brand Development Fund. The funds are used for advertising, media placement, marketing, and public relations programs, all directed by Bee Organized in its reasonable business judgment. Bee Organized has sole discretion over the strategic direction, creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of these funds.
It is important to note that the Brand Development Fund may also be used for evaluating and monitoring the Business Management Systems, maintaining and upgrading the System Website, and developing Digital Media. The funds are intended for the general enhancement of the Bee Organized System brand, public brand recognition, and awareness of the Licensed Marks. The Brand Development Fund will not be used to directly market or promote an individual franchised business, or pay for media placements that may benefit or include any media market that includes the franchisee's Administrative Office or Operating Territory, unless otherwise directed by Bee Organized.