How should the Bee Organized Royalty Fee payments be made?
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.
Payment Authorization: Upon the request of Franchisor and in no event not later than 30 days prior to the earlier of the Actual Opening Date or the Scheduled Opening Date, Franchisee shall execute Franchisor's designated ACH Authorization Form and such other authorization agreements, in the form proscribed by Franchisor and permitting Franchisor's direct withdrawal and/or electronic transfer of sums from Franchisee's designated business bank account, for the on-going payment of Royalty Fees and, all other
fees and sums due from Franchisee under this Agreement. As of the Effective Date, Franchisor's current ACH Authorization that must be executed and complied with by Franchisee is attached to this Agreement as Exhibit 4.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Royalty Fee payments are to be paid monthly by ACH (Automated Clearing House), electronic funds transfer, or as otherwise designated by Bee Organized. These payments are due on the 5th of each monthly Accounting Period for the preceding month, and each month thereafter throughout the entire Term of the Franchise Agreement. Bee Organized may designate a different specific day of the month or another period for these payments.
To facilitate these payments, Bee Organized requires the franchisee to execute an ACH Authorization Form, allowing Bee Organized to directly withdraw or electronically transfer funds from the franchisee's designated business bank account. This form 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 attached to the Franchise Agreement as Exhibit 4.
Bee Organized retains the right to modify the payment method, requiring franchisees to pay Royalty Fees and other amounts due through means other than ACH or automatic debit if deemed appropriate. Franchisees must comply with Bee Organized's payment instructions. Franchisees are not entitled to withhold payments due to Bee Organized under any circumstances, even in cases of alleged non-performance by Bee Organized.
Bee Organized has the discretion to apply any payments received from the franchisee to any past due indebtedness, including Royalty Fees, Advertising Contributions, purchases from Bee Organized or its affiliates, interest, or any other debts owed to Bee Organized or its affiliates.