Can Bee Organized cease providing management services after the death of an individual franchisee?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Bee Organized Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Bee Organized Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Bee Organized Business. Franchisor's appointment of a manager for Franchisee's Bee Organized Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Bee Organized Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Bee Organized Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Bee Organized Business. Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time.
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 is an individual and not a corporate entity, upon their death or permanent disability, their personal representative must appoint a manager meeting the requirements of an Operating Manager within 30 days. This manager must then qualify as an Operating Manager and complete the Training Program within 60 days of appointment.
If a Franchisor-approved Operating Manager is not managing the Bee Organized business within 30 days of the franchisee's death or disability, Bee Organized is authorized, but not required, to appoint a manager to maintain operations on behalf of the franchisee, at the franchisee's expense. Bee Organized can charge a reasonable fee for these management services.
Importantly, Bee Organized retains the right to cease providing these management services at any time, even after initially stepping in to manage the business. This provides Bee Organized with flexibility but also creates uncertainty for the franchisee's estate, as they must find a suitable manager or risk the business's performance declining if Bee Organized withdraws its support.