factual

What costs are included in the 'Direct Cost of Goods Sold' for a Bee Organized franchise?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (e) Direct Cost of Goods Sold means 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.

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.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, the Direct Cost of Goods Sold includes 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. It's important to note that this definition specifically excludes certain costs.

Specifically, the Direct Cost of Goods Sold for a Bee Organized franchise 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 franchisees need to account for these additional expenses separately when assessing their overall profitability.

Understanding what is included and excluded from the Direct Cost of Goods Sold is crucial for a prospective Bee Organized franchisee to accurately project their potential earnings and manage their business effectively. By carefully reviewing these definitions and considering all associated costs, franchisees can make informed decisions and optimize their financial performance.

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.