How are my contributions to the Bee Organized Advertising Cooperative determined?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
thorize a local or regional advertising cooperative within those markets that Franchisor designates (the "Advertising Cooperative"). Franchisee agrees that Franchisor possesses the sole and exclusive right to designate any geographic area in which two or more Bee Organized Business franchises are located as a region for the purpose of establishing an Advertising Cooperative. If Franchisee's Bee Organized Business or Operating Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative. Franchisee agrees to the following:
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Bee Organized Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Bee Organized Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Bee Organized Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth
in Article 9.B.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, if a franchisee's Bee Organized Business or Operating Territory is located within the geographic area of an Advertising Cooperative, the franchisee must participate in and contribute to it. The amount of these contributions is determined and required by the Advertising Cooperative itself. However, the franchisee's contributions to the Advertising Cooperative will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the Franchise Agreement, and these contributions count toward satisfying those minimum local marketing obligations. Franchisees are also required to submit statements and reports to both the Advertising Cooperative and Bee Organized, as required by the cooperative and approved by Bee Organized. All contributions are managed according to the documents governing the Advertising Cooperative. The cooperative exists solely to collect and spend fees for the purposes outlined in Article 9.C. of the agreement.
Bee Organized retains the right to authorize, establish, designate, and de-authorize local or regional advertising cooperatives in markets they designate. Bee Organized has the sole right to designate any geographic area with two or more Bee Organized Business franchises as a region for establishing an Advertising Cooperative. Franchisees must participate in and contribute to the Advertising Cooperative if their business or territory falls within its geographic area.
The Advertising Cooperative operates under specific rules: Bee Organized Businesses owned by Bee Organized or its affiliates within the cooperative's area are not required to contribute. Also, no marketing materials can be used by the cooperative or its members without Bee Organized's prior written approval. The Advertising Cooperative must also comply with rules and regulations established by Bee Organized in the Operations Manual, which Bee Organized can modify.
This means that as a Bee Organized franchisee, your advertising contributions are determined by the local advertising cooperative you are assigned to, but are capped by your minimum local marketing obligations. You are obligated to participate if located within a designated cooperative area and must adhere to Bee Organized's marketing standards and guidelines.