What is the significance of Article 9.C. in the Bee Organized franchise agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Bee Organized Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Bee Organized Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Bee Organized Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.; (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor. All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative. The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.C.;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, Article 9.C. outlines the details regarding Advertising Cooperatives. If Bee Organized institutes an Advertising Cooperative that includes the franchisee's operating territory or Bee Organized Business location, the franchisee is required to participate in and contribute financially to the Advertising Cooperative.
Bee Organized retains the authority to establish the foundational and organizational requirements of the Advertising Cooperative, including voting provisions. These provisions allow the Advertising Cooperative to make decisions based on a simple majority vote, with one vote per franchisee Bee Organized Business located within the designated area. A quorum is established when 25% of the franchisees within the Advertising Cooperative participate.
The Advertising Cooperative is organized exclusively for administering marketing programs and developing media, subject to Bee Organized's review and approval. Franchisees must contribute to the Advertising Cooperative as determined by the cooperative, but these contributions count toward the franchisee's minimum local marketing obligations outlined in Article 9.B. Franchisees are also required to submit statements and reports to both the Advertising Cooperative and Bee Organized. All contributions are managed according to the documents governing the Advertising Cooperative, which operates solely for collecting and expending fees for the purposes outlined in Article 9.C.