factual

What fees are included in 'Franchise Related Expenses' for a Bee Organized franchise?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (j) Franchise Related Expenses means the following select fees currently required under the Franchise Agreements: Royalty Fees, Brand Development Fund Fees, Technology Fees, Business Management System Fees, and local marketing expenses.

Franchise Related Expenses do not include all fee and payment obligations required under a Franchise Agreement.

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

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, Franchise Related Expenses include specific fees required under the Franchise Agreements. These fees are Royalty Fees, Brand Development Fund Fees, Technology Fees, Business Management System Fees, and local marketing expenses. However, the FDD specifies that Franchise Related Expenses do not encompass all fee and payment obligations required under the Franchise Agreement.

For a prospective Bee Organized franchisee, understanding which fees are classified as 'Franchise Related Expenses' is important for accurately assessing the overall cost structure of the franchise. While these expenses are factored into the Direct Gross Profit calculation, it's crucial to recognize that this calculation does not include all expenses incurred by the business.

Specifically, the Technology Fee is currently $45 per user per month, and the Business Management System Fee is currently $189 per month plus $90 per user per month. The Brand Development Fund Fee is 2% of gross sales up to $500,000 and 1% of gross sales over $500,000, but not exceeding $20,000 per year. Franchisees must spend the greater of 3% of Gross Sales or $500 per Territory per month on local marketing. It is important to note that the Technology Fee and Business Management System Fee are integrated into the office expenses disclosed in Disclosed Expenses.

Therefore, a potential franchisee should carefully review the complete Franchise Agreement to identify all fee obligations, not just those listed under 'Franchise Related Expenses,' to fully understand the financial commitments involved in operating a Bee Organized franchise.

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.