Is Bee Organized or its affiliates permitted to 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.
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers to represent approximately 75% of your total purchases and leases in establishing the Franchised Business and approximately 50% of the on-going operating
You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
You must purchase all branded marketing materials from either us or our designated exclusive supplier.
We may require that you exclusively use, at your cost, our designated supplier for social and digital media marketing services and exclusively use, at your cost, our social media platforms, vendors and marketing channels.
We may designate ourselves and our affiliates as exclusive suppliers of source restricted goods and services.
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 are permitted to be designated as the exclusive supplier for the Bee Organized system. The FDD specifies that Bee Organized may designate a supplier, which can include themselves or their affiliates, as the exclusive supplier. This means that franchisees may be required to purchase certain goods and services only from Bee Organized or its affiliated companies.
This arrangement allows Bee Organized to maintain quality control and standardization across all franchise locations. The FDD states that franchisees must purchase or lease certain source restricted goods and services that meet Bee Organized's specifications from approved or designated suppliers. These source-restricted goods and services are estimated to represent approximately 75% of the total purchases and leases in establishing the franchised business and about 50% of the ongoing operating expenses.
Examples of source-restricted items include system supplies, branded items and marketing materials, and the business management system and computer equipment. Specifically, all materials bearing licensed marks must be purchased from Bee Organized or their designated suppliers. Bee Organized also has the right to require franchisees to exclusively use their designated supplier for social and digital media marketing services and platforms.
While this arrangement ensures consistency, it also limits the franchisee's ability to shop around for the best prices. However, Bee Organized states that they formulate and modify their standards and specifications for products and services based on industry experience and management decisions. Prospective franchisees should consider the potential costs and benefits of this arrangement and discuss any concerns with Bee Organized before signing the Franchise Agreement.