How much can the Advertising Cooperatives fee be for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | |
|---|---|---|---|
| Advertising Cooperatives (Note 6) | Up to 3% of monthly Gross Sales but not exceeding the local marketing requirement, currently not assessed | As established by cooperative members | If we authorize an Advertising Cooperative, fees that you pay to the cooperative will count to the satisfaction of your local marketing requirements but will not exceed the local marketing requirement. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, if two or more Bee Organized businesses operate in a designated market, Bee Organized reserves the right to establish and require participation in a local or regional advertising cooperative. If this occurs, franchisees must participate and make ongoing payments to the cooperative. The amount is determined by the cooperative members. Each Bee Organized business franchisee gets one vote per business in the cooperative market, and decisions require a simple majority vote with at least 25% of the designated cooperative members present.
The FDD also specifies that contributions to a designated local or regional cooperative count toward the franchisee's minimum local marketing requirements. However, these contributions cannot exceed the local marketing requirement.
According to Item 6, the advertising cooperative fee can be up to 3% of monthly Gross Sales but not exceeding the local marketing requirement. Currently, this fee is not assessed. The local marketing requirement is the greater of 3% of monthly Gross Sales or $500 per Territory per month. Therefore, the advertising cooperative fee will not exceed this amount.