What is a Bee Organized franchisee required to do with the Gross Sales of their business?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Explanatory Notes to Item 6
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. Payment is subject to our specification and instruction, including, our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Bee Organized Business into the designated bank accounts that are subject to
our ACH authorization. You must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate and require in the operation of your Bee Organized Business. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Note 2: Royalty Fees – You must pay to us a continuing royalty fee (the "Royalty Fee"). The continuing Royalty Fee is a monthly fee equal to the greater of: (a) a sum equal to 8% (the "Royalty Rate") of your monthly Gross Sales; or (b) the amount of your then applicable minimum monthly Royalty Fee requirement (the "Minimum Monthly Royalty Fee Requirement. The Minimum Monthly Royalty Fee Requirement depends on the number of Territories located within and comprising your Operating Territory and is determined in accordance with the following schedule:
| Minimum Monthly Royalty Fee Requirement | |
|---|---|
| Total Year 2 Year 3 Year 4 Year 5 Year 6 Years 7 to 10 | |
| Territories | |
| 1 | $0 $350 $675 $1,000 $1,335 $1,600 $2,000 $2,300 |
| 2 | $0 $350 $750 $1,125 $1,450 $1,800 $2,200 $2,500 |
| 3 | $0 $350 $800 $1,250 $1,600 $2,000 $2,400 $2,800 |
| 4 and more | $0 $350 $875 $1,375 $1,775 $2,225 $2,600 $3,100 |
| Monthly Requirement – The dollar amounts set forth in the above table are monthly requirements within each identified | |
| timeframe. The Minimum Monthly Royalty Fee Requirement is not imposed during the initial six month period following the | |
| opening of your Bee Organized Business. | |
| Territory – The Minimum Monthly Royalty Fee Requirements set forth in the above table are on a per Territory basis. For | |
| purposes of clarification, if the Franchised Business operates in the equivalent of three Territories and is operating in its second | |
| year, the Minimum Monthly Royalty Fee Requirement is $800 per Territory per month. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees are required to deposit the Gross Sales of their business into specific bank accounts that are subject to the franchisor's ACH authorization. This means Bee Organized has the right to electronically debit these accounts for fees and other payments. Franchisees must also use pre-authorized payment, point-of-sale, credit card processing, and electronic funds transfer systems that Bee Organized designates.
This requirement ensures that Bee Organized can collect royalty fees, brand development fund fees, technology fees, and other payments directly from the franchisee's account. The franchisee is responsible for any service charges or fees imposed by their bank to facilitate these electronic debits. This level of control over funds is common in franchising to ensure timely payment of fees and maintain brand consistency.
Gross Sales are defined as the total dollar sales from all business and clients, including revenues from any source, whether in cash, credit, or other forms of consideration. It also includes the retail value of goods or services traded or borrowed. Gross Sales include revenues derived from business conducted within or outside the franchisee's operating territory related to the Bee Organized business or a competitive business. Exclusions from Gross Sales include sales taxes remitted to the proper authority and authorized promotional discounts provided to clients.
In addition to depositing gross sales into designated accounts, Bee Organized franchisees must also be prepared for various deductions from those gross sales. These include a monthly royalty fee (the greater of 8% of gross sales or a minimum monthly amount), a brand development fund fee (2% of gross sales up to $500,000 annually, and 1% above that), and ongoing local marketing expenses (at least 3% of monthly gross sales or $500 per territory).