What is Bee Organized's role in administering marketing funds?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Administration of Marketing Funds We may administer and manage System-wide marketing funds comprised of a Brand Development Fund and/or advertising cooperative. (Franchise Agreement, Article 9);
Brand Development Fund – We may control and administer a brand development fund (the "Brand Development Fund") (Franchise Agreement, Article 9.A.).
As disclosed in Item 6 of this Disclosure Document, you must contribute a monthly sum to the Brand Development Fund not to exceed 2% of your Gross Sales for annual Gross Sales up to $500,000 and 1% of your Gross Sales for annual Gross Sales over $500,000, but not exceeding $20,000 per year.
We may use the Brand Development Fund for market studies, research, service development, product development, testing, research studies, technology development, advertising and public relations studies or services, creative production and printing of advertising and marketing materials, advertising copy and commercials, tracking costs, agency fees, advertising councils, administrative costs, which may include reimbursement for direct administrative and personnel costs associated with advertising and public relations, and any other costs associated with the development, marketing and testing of advertising, marketing and public relations materials, and the purchase of media placement, advertising time and public relations materials in national, regional or other advertising and public relations media in a manner determined by us, in our discretion, to be in the best interest of the franchisees and the System.
During the fiscal year ending December 31, 2024, we did not collect any Brand Development Fund Fees, however, we reserve the right to do so in the future. We began collecting Brand Development Fund Fees in April of 2025;
- Advertising Cooperative – We possess the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within markets that we designate. We will exclusively determine the geographic and other boundaries constituting each cooperative and factors that we will consider include media markets and distribution channels including print, broadcast, and digital. If we establish a cooperative within a market that includes your Bee Organized Business, you must contribute to the cooperative in such amounts and frequency as determined by the cooperative. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions, marketing expenditures and allocations. We may require that cooperative decisions be made based on approval of a simple majority of franchisee members based on one vote per Bee Organized Business and with a quorum constituting not less than 25% of the designated franchisee cooperative members. If a cooperative exceeds nine franchisee members, we may require that the cooperative establish formal governing documents. Each cooperative must prepare annual unaudited financial statements that must be provided to each cooperative member for review. We reserve the right to form, change, dissolve, or merge
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–29)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized may administer System-wide marketing funds comprised of a Brand Development Fund and/or advertising cooperative. Bee Organized may control and administer a brand development fund. Franchisees must contribute a monthly sum to the Brand Development Fund not to exceed 2% of gross sales for annual gross sales up to $500,000 and 1% of gross sales for annual gross sales over $500,000, but not exceeding $20,000 per year. Bee Organized may use the Brand Development Fund for various marketing and development activities, including market studies, research, advertising, and administrative costs. The Brand Development Fund will not be used to directly promote a franchisee's Bee Organized Business or the marketing area in which their Bee Organized Business will be located. Bee Organized is not required to segregate the Brand Development Fund from its general operating funds and is not a fiduciary or trustee of the Brand Development Fund. During the fiscal year ending December 31, 2024, Bee Organized did not collect any Brand Development Fund Fees, however, they began collecting Brand Development Fund Fees in April of 2025.
Bee Organized possesses the right to authorize, establish, designate and de-authorize a local or regional advertising cooperative within markets that they designate. If Bee Organized establishes a cooperative within a market that includes a franchisee's Bee Organized Business, the franchisee must contribute to the cooperative in such amounts and frequency as determined by the cooperative. Members of the cooperative will be responsible for administering the cooperative, including determining the amount of contributions, marketing expenditures and allocations. Bee Organized may require that cooperative decisions be made based on approval of a simple majority of franchisee members based on one vote per Bee Organized Business and with a quorum constituting not less than 25% of the designated franchisee cooperative members. If a cooperative exceeds nine franchisee members, Bee Organized may require that the cooperative establish formal governing documents. Each cooperative must prepare annual unaudited financial statements that must be provided to each cooperative member for review. Bee Organized reserves the right to form, change, dissolve, or merge cooperatives.
Bee Organized does not provide assistance with the hiring and training of a franchisee's employees. Franchisees are directly responsible for the management and supervision of their employees. For the protection of the System, franchisees must ensure that all employees wear and maintain the proper uniforms with Bee Organized's approved System branded apparel and uniforms including, but not limited to, the apparel and uniforms comprising System Supplies. Franchisees must monitor and ensure that all System Supplies and Approved Services and Products are prepared, maintained, and served in accordance with the System standards and Manuals. Except as to national, regional and corporate accounts that Bee Organized may negotiate, franchisees will exclusively determine the prices that they charge for the Approved Services and Products served and sold by their Bee Organized Business. However, Bee Organized may suggest pricing levels that they recommend.