How is the Minimum Monthly Royalty Fee Requirement determined for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 earlier of the Actual Opening Date or the Scheduled Opening Date of the 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. | |
| Renewal Term – During any applicable renewal term, the Minimum Monthly Royalty Fee Requirement shall be not less than the Minimum Monthly Royalty Fee Requirement applicable during years 7 to 10 and shall be subject to increase as determined by Franchisor provided that within each calendar month of any renewal term we shall not increase the Minimum Monthly Royalty Fee Requirement by more than 10% per annum. |
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the minimum monthly royalty fee is determined by the number of territories in the franchisee's operating territory and the number of years the franchise has been in operation. The royalty fee is the greater of 8% of gross monthly sales or the minimum monthly royalty fee requirement.
The minimum monthly royalty fee requirement is not imposed during the initial six-month period following the earlier of the actual or scheduled opening date of the Bee Organized business. For a single territory, the minimum monthly royalty fee starts at $0 in year one, increases to $350 in year two, $675 in year three, $1,000 in year four, $1,335 in year five, $1,600 in year six, and $2,000 in years seven to ten, and $2,300 thereafter.
For franchisees operating in multiple territories, the minimum monthly royalty fee requirement increases. For example, if a Bee Organized franchise operates in three territories during its second year, the minimum monthly royalty fee requirement is $800 per territory per month, totaling $2,400. During any renewal term, the minimum monthly royalty fee will not be less than the amount applicable during years 7 to 10 and may be increased by Bee Organized, but not by more than 10% per annum within each calendar month of the renewal term.
This escalating minimum royalty fee structure is fairly common in franchising. It is designed to support new franchisees as they start their business, while also incentivizing growth and expansion over time. Prospective Bee Organized franchisees should carefully consider these requirements and ensure they have a solid business plan to meet or exceed these minimums.