How is 'Gross Sales' defined for a Bee Organized business?

According to Bee Organized's 2025 Franchise Disclosure Document, Gross Sales is defined as the total revenue derived by each Bee Organized Business, less sales tax, discounts, allowances, and returns. This definition is important for franchisees as it is the basis for calculating royalty fees and other financial obligations to the franchisor.

For a prospective Bee Organized franchisee, understanding this definition is crucial for accurately tracking revenue and calculating expenses. Franchisees should ensure their accounting practices align with this definition to avoid discrepancies in royalty payments or financial reporting. The FDD also mentions that the Brand Development Fund Fee is based on a percentage of Gross Sales, further emphasizing the importance of accurately calculating this figure.

Furthermore, the document clarifies that certain fees, such as the Royalty Fee and the Brand Development Fund Fee, are calculated based on Gross Sales. For example, the Royalty Fee is the greater of 8% of Gross Sales or a Minimum Monthly Royalty Fee Requirement, which can be $6,000 per month for a three-territory outlet open since 2015. The Brand Development Fund Fee is 2% of Gross Sales up to $500,000 and 1% of Gross Sales over $500,000, not exceeding $20,000 per year. These details highlight the direct impact of Gross Sales on a franchisee's financial obligations.