Can Bee Organized or its affiliates be designated as the exclusive supplier for the Bee Organized system?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
We may designate a supplier (which may include us or our affiliates) as the exclusive supplier for the System. Our specifications and list of approved and designated suppliers is contained in our Manuals. We will notify you of any changes to our specifications or list of approved or designated suppliers. We may notify you of these changes in various ways, including written or electronic correspondence, amendments and updates to our Manuals, verbal and other forms of communication. We formulate and modify our standards and specifications for products and services based on our industry experience and our management decisions as to the overall operation and expansion of the System or as we may otherwise designate and approve in writing.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized or its affiliates can be designated as the exclusive supplier for the Bee Organized system. The FDD states, "We may designate a supplier (which may include us or our affiliates) as the exclusive supplier for the System." This means that Bee Organized has the right to require franchisees to purchase certain goods and services only from them or their affiliated companies. This control allows Bee Organized to maintain quality standards and consistency across all franchise locations.
For a prospective franchisee, this means a significant portion of their purchases and leases must come from approved or designated suppliers. The FDD estimates that approximately 75% of the initial establishment purchases and approximately 50% of ongoing operating expenses will be spent on these source-restricted goods and services. These include system supplies, branded items, marketing materials, and the business management system. Specifically, franchisees must purchase branded marketing materials from Bee Organized or its designated exclusive supplier. Bee Organized may also require franchisees to exclusively use their designated supplier for social and digital media marketing services and platforms.
Bee Organized also has the right to negotiate purchase agreements with designated suppliers on behalf of the entire system and may limit the number of approved vendors. While there are currently no purchase or supply agreements in effect, Bee Organized retains the right to institute and expand rebate programs in the future, potentially benefiting from franchisee purchases. Franchisees do not receive any material benefits for using Bee Organized's designated or approved suppliers.
If a franchisee wishes to use a non-approved supplier, they must submit a written request for approval, which may include a supplier review and testing fee, samples, and facility inspections. Bee Organized has the discretion to withhold approval based on factors such as the supplier's ability to meet standards, quality control, and whether the approval advances the overall interests of the Bee Organized system. This system ensures Bee Organized maintains control over the quality and consistency of products and services used within the franchise network.