What is the maximum amount a Bee Organized franchisee must contribute to the Advertising Cooperative?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth
in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees must contribute to the Advertising Cooperative if their business or operating territory falls within the cooperative's geographic area. The amount is determined and required by the Advertising Cooperative itself. However, the franchisee's contribution to the Advertising Cooperative will not exceed the franchisee's local minimum marketing obligations as outlined in Article 9.B of the agreement. These contributions to the Advertising Cooperative also count toward fulfilling the franchisee's minimum local marketing obligations. This means that the maximum contribution is tied to the franchisee's local marketing obligations, the specific amount of which is not detailed in this excerpt.
Bee Organized retains the right to authorize, establish, designate, and de-authorize local or regional advertising cooperatives within designated markets. The franchisor also has the exclusive right to designate any geographic area with two or more Bee Organized Business franchises as a region for establishing an Advertising Cooperative. Franchisees are obligated to participate in and contribute to these cooperatives if their business is located within the designated area.
Franchisees should carefully review Article 9.B of the Franchise Agreement to understand their local minimum marketing obligations, as this figure effectively caps their potential contributions to the Advertising Cooperative. Prospective franchisees should inquire with Bee Organized about the typical range of local marketing obligations and how the Advertising Cooperative determines contribution amounts to fully understand the potential financial commitment.