For Bee Organized, what agreement must an Operating Manager who is a family member of the Franchisee sign?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Franchisee agrees that, at all times, that the development and operation of the Franchised Business shall be managed, operated, and maintained under the active, continuing management, substantial personal involvement and hands-on supervision, of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completes Franchisor's Training Program, and otherwise meets the criteria and conditions for qualification as an Operating Manager as designated and determined by Franchisor from time to time. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager shall also sign and agree to be bound by the terms of the Franchise Owner and Spouse Agreement and Guaranty.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, if a franchisee delegates management functions to an authorized Operating Manager, and that Operating Manager is a family member or an owner, then the Operating Manager must sign and agree to be bound by the terms of the Franchise Owner and Spouse Agreement and Guaranty. This ensures that family members or owners acting as Operating Managers are held to the same standards and obligations as the franchisee themselves.
The Franchise Owner and Spouse Agreement and Guaranty likely contains provisions related to the franchisee's obligations, financial responsibilities, and adherence to Bee Organized's system standards. By requiring the family member or owner serving as Operating Manager to sign this agreement, Bee Organized aims to maintain consistency and accountability in the management of the franchised business, even when the day-to-day operations are handled by someone other than the franchisee.
This requirement underscores the importance Bee Organized places on active management and adherence to its standards. It also highlights the potential risks associated with delegating management responsibilities, particularly to family members, and the need for clear contractual obligations to protect the franchisor's interests. Prospective franchisees should carefully review the terms of the Franchise Owner and Spouse Agreement and Guaranty to understand the full scope of their obligations and those of any family member serving as an Operating Manager.