How should a Bee Organized franchisee pay the Brand Development Fund Fee?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
(1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Gross Sales (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each monthly Accounting Period (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Sales of the Franchised Business for annual Gross Sales up to $500,000 and 1% of the Gross Sales of the Franchised Business for annual Gross Sales over $500,000 for each monthly Accounting Period, but not exceeding $20,000 per year;
(6) Franchisee agrees to participate in all advertising, marketing, promotions, research and public relations programs instituted by the Brand Development Fund;
(7) Bee Organized Businesses owned by Franchisor or Franchisor's affiliates are not required to pay any Brand Development Fund Fee or contribute to or make any contribution to the Brand Development Fund;
(8) Franchisee and Franchisor acknowledge and agree that (a) the Brand Development Fund is not a trust, (b) Franchisor is not a trustee or fiduciary of the Brand Development Fund, and (c) Franchisor may deposit and maintain any and all funds of the Brand Development Fund Fee in Franchisor's general accounts.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the Brand Development Fund Fee must be paid to the franchisor on the due date, following the payment terms and methods outlined in Article 5.B, which pertains to Royalty Fees, or as otherwise directed by Bee Organized. The amount of the Brand Development Fund Fee is a percentage of Gross Sales, determined and designated by Bee Organized. Franchisees will receive written notice specifying the percentage of Gross Sales they are required to contribute.
However, there are limitations to the amount a franchisee will be required to contribute. 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 for each monthly accounting period, but not exceeding $20,000 per year.
Bee Organized franchisees are obligated to participate in all advertising, marketing, promotions, research, and public relations programs initiated by the Brand Development Fund. Franchisees should be aware that Bee Organized businesses owned by the franchisor or its affiliates are not required to pay the Brand Development Fund Fee or contribute to the Brand Development Fund. The Brand Development Fund is not a trust, and Bee Organized may deposit the funds into their general accounts.