For a Bee Organized franchise, what is the dependency between 'Gross Sales' and 'Hours'?

According to Bee Organized's 2025 Franchise Disclosure Document, there is a direct relationship between Gross Sales and Hours. The document defines 'Hours' as the amount of time, in hours, that a Bee Organized Business spends working on Projects for Clients during a particular Calendar Year. This is calculated by dividing the total Gross Sales of an Outlet during the Calendar Year by the average billable hour rate of all Outlets in the Bee Organized franchise System, which is $75 per hour. Therefore, 'Hours' is derived from 'Gross Sales'.

This means that a Bee Organized franchisee's reported hours are not simply a measure of time spent, but are directly calculated from their revenue. Higher gross sales will translate directly into a higher number of 'Hours' as defined by Bee Organized. This is important for franchisees to understand, as it affects how their performance is measured and compared within the franchise system.

For example, if a Bee Organized franchise has $150,000 in Gross Sales in a year, the 'Hours' would be calculated as $150,000 / $75, resulting in 2,000 hours. This formula is consistent across all Bee Organized franchises, allowing for a standardized comparison of productivity based on revenue generated. A prospective franchisee should consider how this calculation method might impact their business planning and performance evaluations.

It is important to note that this calculation relies on the average billable hour rate of $75. Any changes to this average rate across the Bee Organized system could affect the 'Hours' calculation for individual franchisees, even if their Gross Sales remain constant. Franchisees should stay informed about any adjustments to this rate and understand how it may influence their reported 'Hours'.