Can the Bee Organized Brand Development Fund be used for advertising councils?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
(10) Franchisor, in Franchisor's Reasonable Business Judgment, may establish a council to provide guidance respecting the administration of the Brand Development Fund and marketing matters concerning the Brand Development Fund. The council shall only serve in an advisory capacity and Franchisor shall select members of the council which may be comprised of employees of Franchisor, Franchisor, franchisees of the System and third parties.
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 can be used for advertising councils. Specifically, Bee Organized may establish a council to provide guidance on the administration of the Brand Development Fund and marketing matters related to the fund. This council serves in an advisory capacity, and its members may include Bee Organized employees, franchisees, and third parties.
Furthermore, the FDD details the possibility of Advertising Cooperatives, which are distinct from the advisory council mentioned above. If Bee Organized institutes an Advertising Cooperative that includes a franchisee's Operating Territory or Bee Organized Business location, the franchisee is required to participate in and contribute financially to the Advertising Cooperative. These cooperatives are organized for administering marketing programs and developing media, subject to Bee Organized's review and approval, for use by members in local or regional marketing.
It's important to note that while Bee Organized may establish a council for guidance on the Brand Development Fund, the franchisor ultimately directs all advertising, media placement, marketing, and public relations programs financed by the fund. Franchisees are obligated to participate in programs instituted by the Brand Development Fund and Advertising Cooperatives, if established, within their territory. However, the Brand Development Fund will not be used to directly market or promote the Franchised Business unless directed by Bee Organized.