Who determines the ongoing financial contributions to the Advertising Cooperative for Bee Organized franchisees?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.; (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor. All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative. The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.C.;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the ongoing financial contributions to the Advertising Cooperative are determined by the Advertising Cooperative itself. Franchisees are required to participate in and contribute to the Advertising Cooperative if their Bee Organized Business or Operating Territory is located within the designated geographic area.
The document also states that Bee Organized's franchisor has the right to authorize, establish, designate, and de-authorize a local or regional advertising cooperative within those markets that the franchisor designates. The franchisor also establishes foundational and organizational requirements, including voting provisions, allowing the Advertising Cooperative to make decisions based on a simple majority vote, with a quorum of 25% of franchisees within the cooperative.
However, the franchisee's contributions to the Advertising Cooperative cannot exceed the franchisee's local minimum marketing obligations as outlined in the agreement. All marketing materials and plans used by the Advertising Cooperative must receive prior written approval from Bee Organized's franchisor. Bee Organized Businesses owned by the franchisor or its affiliates are not required to contribute to the Advertising Cooperative.