How should Bee Organized franchisees pay the Brand Development Fund Fee?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
of the percentage of Gross Sales that Franchisee is required to contribute to the Brand Development Fund. Upon such written notice to Franchisee, the percentage of Gross Sales to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. 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;
- (3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof. Without limiting the foregoing, the Brand Development Fund may also be utilized for evaluation and monitoring of the Business Management Systems, maintenance and upgrades to the System Website, and development of Digital Media;
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 Bee Organized on the Due Date. The payment terms and method are the same as those outlined in Article 5.B for Royalty Fees, unless Bee Organized designates otherwise.
The Brand Development Fund Fee is a mandatory, ongoing fee equal to a percentage of Gross Sales, as determined by Bee Organized. Franchisees will receive written notice of this percentage. However, the contribution is capped at 2% of Gross Sales for annual Gross Sales up to $500,000 and 1% of Gross Sales for annual Gross Sales over $500,000, with a maximum of $20,000 per year.
Bee Organized has the discretion to manage the Brand Development Fund, including advertising, media placement, marketing, and public relations programs. The fund's purpose is to enhance the System brand and increase public recognition of the Licensed Marks. The fund may also cover Bee Organized's costs related to administering the fund and achieving its brand awareness goals, including salaries and administrative expenses.