What is the definition of 'Due Date' in the context of Bee Organized Royalty Fee payments?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ly Royalty Fee Requirement shall be not less than the Minimum Monthly Royalty Fee Requirement applicable during years 7 to 10 and shall be subject to increase as determined by Franchisor provided that within each calendar month of any renewal term we shall not increase the Minimum Monthly Royalty Fee Requirement by more than 10% per annum.
Payment and Due Date: The Royalty Fee shall be calculated on a monthly basis for each respective monthly Accounting Period. Royalty Fee payments shall be paid by Franchisee to Franchisor monthly by ACH, electronic funds transfer, or as otherwise designated by Franchisor and shall be due on the 5th of each monthly Accounting Period for the preceding month, and each month thereafter throughout the entire Term of this Agreement or, such other specific day of the month that Franchisor designates from time to time or for such other period that Franchisor may designate (the "Due Date").
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the 'Due Date' refers to the date when royalty fee payments are due to the franchisor. Specifically, the royalty fee is calculated monthly for each accounting period. Franchisees are required to pay these fees monthly via ACH, electronic funds transfer, or another method designated by Bee Organized. The standard due date is the 5th of each month for the preceding month's accounting period.
However, Bee Organized retains the flexibility to modify this due date. The franchise agreement states that the due date can be another specific day of the month or for another period, as designated by Bee Organized from time to time. This means that while the 5th of the month is the standard, Bee Organized can change this date at its discretion.
Furthermore, on the Due Date each month, the franchisee must also submit a Royalty and Activity Report to Bee Organized. This report contains information relating to the Gross Sales, financial performance, and operations of the Franchised Business for the preceding monthly Accounting Period. This report must be transmitted, confirmed, and/or otherwise made available to Bee Organized as designated by Bee Organized.