To whom does a Bee Organized franchisee pay the Brand Development Fund Fee?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
As designated by Franchisor in this Agreement, the Manual or otherwise, Franchisee shall pay the following additional fees to either Franchisor, Franchisor's affiliates, or Franchisee's designees:
- (1) Brand Development Fund Fees Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, the Brand Development Fund Fee as set forth in Article 9.A. of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee must pay the Brand Development Fund Fee to either Bee Organized itself, one of Bee Organized's affiliates, or to a designee of Bee Organized. The specific payee may vary, as Bee Organized retains the right to designate where these fees are directed.
This means that as a prospective franchisee, you should confirm exactly to whom these fees are to be paid. This could be directly to the franchisor, to a separate entity controlled by the franchisor, or even to a third-party vendor that Bee Organized uses for marketing or other services.
It is important to note that the Brand Development Fund Fee is a mandatory and continuing fee, calculated as a percentage of gross sales. The franchisee will receive written notice specifying the percentage of gross sales required for the Brand Development Fund. Franchisees will not be required to contribute more than 2% of gross sales for annual gross sales up to $500,000 and 1% of gross sales for annual gross sales over $500,000, but not exceeding $20,000 per year.