factual

Is the Bee Organized Brand Development Fund Fee mandatory?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

chisor upon demand. The foregoing remedies are in addition to any other remedies Franchisor may have under this Agreement, at law, or in equity.

ARTICLE 9 BRAND DEVELOPMENT AND MARKETING

Franchisor is not required to conduct any marketing on behalf of Franchisee or the System.

9.A. BRAND DEVELOPMENT FUND

At all times and from time to time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, Franchisor may institute, implement, maintain, delegate and administer a brand development fund (the "Brand Development Fund"). The following shall apply to the Brand Development Fund at all times throughout the Term:

  • (1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each monthly Accounting Period (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Sales of the Franchised Business for annual Gross Sales up to $500,000 and 1% of the Gross Sales of the Franchised Business for annual Gross Sales over $500,000 for each monthly Accounting Period, but not exceeding $20,000 per year;
  • (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.

Source: Item 23 — RECEIPTS (FDD pages 54–218)

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, payment of the Brand Development Fund Fee is mandatory. If Bee Organized institutes a Brand Development Fund, franchisees must pay a continuing fee. This fee is a percentage of Gross Sales, as determined by Bee Organized.

The FDD specifies that franchisees will not be required to contribute more than 2% of Gross Sales for annual Gross Sales up to $500,000, and 1% of Gross Sales for annual Gross Sales over $500,000. However, the total contribution will not exceed $20,000 per year. Bee Organized will provide written notice to the franchisee regarding the specific percentage of Gross Sales required for contribution to the Brand Development Fund.

Franchisees are required to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund. Bee Organized businesses owned by the franchisor or its affiliates are not required to pay the Brand Development Fund Fee or contribute to the Brand Development Fund.

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.