When is the Bee Organized Royalty Fee due?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ly 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.
Payment and Due Date: The Royalty Fee shall be calculated on a monthly basis for each respective monthly Accounting Period. Royalty Fee payments shall be paid by Franchisee to Franchisor monthly by ACH, electronic funds transfer, or as otherwise designated by Franchisor and shall be due on the 5th of each monthly Accounting Period for the preceding month, and each month thereafter throughout the entire Term of this Agreement or, such other specific day of the month that Franchisor designates from time to time or for such other period that Franchisor may designate (the "Due Date").
Tax Obligations: If any federal, state or local tax, other than an income tax, is imposed on the Royalty Fee paid by Franchisee to Franchisor that, Franchisor cannot directly and, dollar for dollar, offset against taxes required to be paid by Franchisor under any applicable federal or state laws, Franchisee must compensate Franchisor in the manner prescribed by Franchisor so that the net amount or net rate received by Franchisor for the Royalty Fee is not less than that which has been established by this Agreement and which was due to Franchisor on the effective date of this Agreement. If any state imposes a sales or other tax on the Royalty Fees, then Franchisor shall have the right to charge and collect the tax from Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the Royalty Fee is calculated monthly for each accounting period. Franchisees must pay the Royalty Fee monthly via ACH, electronic funds transfer, or another method designated by Bee Organized. The payment is due on the 5th of each month for the preceding month, or on another specific day of the month that Bee Organized may designate. This payment schedule continues throughout the entire term of the Franchise Agreement.
Bee Organized requires franchisees to authorize direct withdrawal or electronic transfer of funds for ongoing Royalty Fee payments. This authorization must be completed no later than 30 days before the earlier of the Actual Opening Date or the Scheduled Opening Date. The current ACH Authorization form is included as Exhibit 4 in the Franchise Agreement.
Franchisees must also submit a Royalty and Activity Report to Bee Organized on the Due Date each month. This report includes information on Gross Sales, financial performance, and operations for the preceding month. Bee Organized retains the right to verify these royalty payments as needed.