What costs are excluded from 'Direct Cost of Goods Sold' for a Bee Organized franchise?

According to Bee Organized's 2025 Franchise Disclosure Document, the Direct Cost of Goods Sold for a Bee Organized franchise excludes several categories of expenses. Direct Cost of Goods Sold is defined as the direct non-managerial and non-administrative cost of goods and services sold and labor incurred by an Outlet in directly providing the Approved Services and Products, comprised of supplies and materials used to provide Approved Services and Products to clients.

Specifically, Direct Cost of Goods Sold does not include Direct Labor Cost, managerial labor and expenses, administrative labor and expenses, marketing expenses, insurance expenses, operating expenses, general expenses including, but not limited to interest, taxes, depreciation, amortization, and Franchise Related Expenses. This means that while the cost of the actual supplies and materials used for organizing projects are included, the costs associated with running the business, such as salaries for managers or administrative staff, marketing efforts, and franchise fees, are not factored into this particular calculation.

For a prospective Bee Organized franchisee, understanding these exclusions is crucial for accurately assessing the overall profitability of the franchise. While a lower Direct Cost of Goods Sold might initially seem positive, it's important to remember that this figure doesn't reflect the total expenses required to operate the business. Franchisees need to consider all excluded costs to determine their true net profit or income. This is a common practice in franchising, where franchisors often break down financial performance into specific categories to provide a clearer picture of different aspects of the business model.