What is the 'Brand Development Fund' for Bee Organized franchises?
Bee_Organized Franchise · 2025 FDDAnswer 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. 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;
- (5) Franchisee agrees that the Br
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, the Brand Development Fund is a fund that Bee Organized may institute, implement, maintain, delegate, and administer, as determined by Bee Organized. If instituted, franchisees must pay a mandatory and continuing fee to the Brand Development Fund. This fee is a percentage of Gross Sales, determined and designated by Bee Organized. However, 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, but not exceeding $20,000 per year for each monthly accounting period.
Bee Organized will provide written notice to the franchisee regarding the percentage of gross sales that the franchisee is required to contribute to the Brand Development Fund. This percentage will apply for each monthly accounting period during the term, unless otherwise designated by Bee Organized in writing. The Brand Development Fund Fee is paid to Bee Organized on the due date, following the payment terms and method outlined for Royalty Fees, or as otherwise designated by Bee Organized.
Bee Organized has sole discretion over the strategic direction, creative concepts, materials, endorsements, geographic, market, and media placement and allocation of advertising, media placement, marketing, and public relations programs and activities financed by the Brand Development Fund. 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. The purpose of these activities is 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 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. The Brand Development Fund may be used to pay various costs and expenses of Bee Organized for reasonable salaries, wages, administrative costs, and overhead incurred in activities related to the administration, activities, and/or the brand awareness goals of the Brand Development Fund, including expenses for advertising.