What are the two options for calculating the monthly Royalty Fee for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees have two options for calculating the monthly Royalty Fee. The Royalty Fee is the greater of two calculations: either 8% of the franchisee's monthly Gross Sales, or the Minimum Monthly Royalty Fee Requirement.
The Minimum Monthly Royalty Fee Requirement varies based on the number of territories in the franchisee's operating territory and the number of years the franchise has been in operation. For example, if a Bee Organized franchise operates in three territories and is in its second year, the Minimum Monthly Royalty Fee Requirement is $800 per territory per month. This minimum is not imposed during the initial six-month period after opening the Bee Organized Business.
It's important to note that Gross Sales include revenues from all business and clients, whether the payment is in cash, credit, or other forms of consideration. Gross Sales also include revenues from business conducted within or outside the operating territory that is related to the Bee Organized Business. Sales taxes collected and remitted to the proper taxing authority and authorized promotional discounts are excluded from Gross Sales. Franchisees must deposit Gross Sales into designated bank accounts that are subject to ACH authorization, allowing Bee Organized to electronically debit fees.