What is the royalty fee for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ly debit your bank account.
Note 2: Royalty Fees – You must pay to us a continuing royalty fee (the "Royalty Fee"). The continuing Royalty Fee is a monthly fee equal to the greater of: (a) a sum equal to 8% (the "Royalty Rate") of your monthly Gross Sales; or (b) the amount of your then applicable minimum monthly Royalty Fee requirement (the "Minimum Monthly Royalty Fee Requirement. The Minimum Monthly Royalty Fee Requirement depends on the number of Territories located within and comprising your Operating Territory and is determined in accordance with the following schedule:
| | 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 | | | opening of your 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 us provided that within each calendar year of any renewal term we shall not increase the Minimum Monthly Royalty Fee | | | Requirement by more than 10% per annum. | | | | Monthly Requirement – The dollar amounts set forth in the above table are monthly requirements within each identified timeframe.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees must pay a continuing royalty fee, which is a monthly fee. This royalty fee is the greater of two options: either 8% of the franchisee's monthly Gross Sales (referred to as the "Royalty Rate") or a minimum monthly royalty fee. The minimum monthly royalty fee depends on the number of territories within the franchisee's operating territory.
The minimum monthly royalty fee requirement varies depending on the number of territories and the year of operation. For example, if a franchisee operates in one territory, the minimum monthly royalty fee ranges from $0 in year 1 to $2,300 in years 7 to 10. If a franchisee operates in four or more territories, the minimum monthly royalty fee ranges from $0 in year 1 to $3,100 in years 7 to 10. The FDD specifies that the minimum monthly royalty fee is not imposed during the initial six-month period after opening the Bee Organized Business.
Bee Organized requires that all fees, including the royalty fee, be paid via ACH or other electronic means, automatically debited from the franchisee's bank account. Franchisees must deposit their Gross Sales into designated bank accounts that are subject to ACH authorization. The franchisor can increase the Minimum Monthly Royalty Fee Requirement by no more than 10% per annum during any renewal term.