What is considered a 'Company Owned Outlet' for a Bee Organized business?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Company Owned Outlet means an Outlet owned either directly or indirectly by us, our affiliate or any person identified in Item 2 of this Disclosure Document.
A Company Owned Outlet also includes any Outlet that is operated as a joint venture owned in part by us, our affiliate or any person identified in Item 2 of this Disclosure Document, or that is managed by us our affiliate or any person identified in Item 2.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a 'Company Owned Outlet' refers to a Bee Organized business that is owned either directly or indirectly by the franchisor (Bee Organized Enterprises, LLC), its affiliate, or any person identified in Item 2 of the FDD. This definition also extends to any Bee Organized outlet operated as a joint venture partly owned or managed by Bee Organized Enterprises, LLC, its affiliate, or any person identified in Item 2 of the FDD.
For a prospective franchisee, understanding this definition is crucial because the financial performance of company-owned outlets is sometimes presented in Item 19 of the FDD. This data can provide insights into the potential performance of a Bee Organized business, although it's important to recognize that company-owned outlets may have different operational characteristics compared to franchised locations. For example, Bee Organized's company-owned outlet benefits from an extensively experienced management team and established brand recognition in its local market.
It's also important to note that company-owned outlets do not have the obligation to pay ongoing fees, such as royalty fees, which franchisees must pay. This difference in cost structure can impact the financial performance and profitability of a company-owned outlet compared to a franchised outlet. Therefore, while reviewing the financial performance of company-owned outlets, prospective franchisees should consider these differences and how they might affect their own potential business outcomes.
In 2024, Bee Organized had one company-owned outlet operating in Overland Park, Kansas, which had been in operation since September 2015. This outlet operates in an operating territory equivalent to three territories, comprising approximately 150,388 qualified households. The FDD indicates that this outlet is considered representative of the franchised business, providing a benchmark for potential franchisees to evaluate their own performance against, while keeping in mind the aforementioned differences.