Is the Bee Organized Royalty Fee refundable?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Throughout the Term of this Agreement, Franchisee shall pay to Franchisor a continuing monthly non-refundable royalty fee (the "Royalty Fee") in an amount equal to the greater of (a) 8% (the "Royalty Rate") of Franchisee's monthly Gross Sales, or (b) the amount of the then applicable minimum monthly Royalty Fee requirement (the "Minimum Monthly Royalty Fee Requirement. The Minimum Monthly Royalty Fee Requirement is determined based on the number of Territories located within Franchisee's Operating Territory, as determined by Franchisor, and as set forth in the following schedule:
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the royalty fees franchisees pay to Bee Organized Enterprises, LLC are non-refundable. Specifically, franchisees must pay a continuing monthly royalty fee throughout the term of the agreement. This fee is the greater of 8% of the franchisee's monthly Gross Sales or the applicable minimum monthly royalty fee requirement.
The minimum monthly royalty fee is determined by the number of territories within the franchisee's operating territory. The royalty fee is calculated monthly for each accounting period and is due on the 5th of each month for the preceding month. The method of payment is via ACH, electronic funds transfer, or as otherwise designated by Bee Organized.
This non-refundable aspect of the royalty fee means that once paid, these fees will not be returned to the franchisee under any circumstances, even if the franchisee does not generate the revenue they expected or if the franchise agreement is terminated early. This is a standard practice in franchising, as royalty fees compensate the franchisor for the ongoing use of their brand, systems, and support.