What is considered a 'Company Owned Outlet' for a Bee Organized franchise?

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, its affiliate, or any person identified in Item 2 of the FDD. This definition also extends to any Bee Organized outlet that operates as a joint venture partly owned by the franchisor, its affiliate, or individuals listed in Item 2, or is managed by these entities.

For a potential franchisee, understanding this definition is crucial because the financial performance of company-owned outlets may be presented in Item 19 of the FDD to give insight into potential earnings. However, the FDD also cautions that the financial and operational characteristics of company-owned outlets may differ significantly from franchised outlets. For example, Bee Organized's company-owned outlet benefits from an extensively experienced management team, greater brand recognition in its local market, and the absence of ongoing royalty fees that franchisees must pay.

Bee Organized had one company-owned outlet during the 2024 calendar year, which is considered an operational company-owned outlet because it was open and operating before the start of that year. This outlet, located in Overland Park, Kansas, began operations in September 2015 and operates within a territory equivalent to three standard territories, comprising approximately 150,388 qualified households. The FDD uses this outlet as a representation of the franchised business, but it's important to recognize the factors that differentiate it from a typical franchise.

Prospective franchisees should carefully consider these differences when reviewing the financial performance data of the company-owned outlet. While the data can provide a general understanding of the business's potential, it is essential to account for the unique advantages and operational characteristics that may not be replicable in a franchised setting. Understanding these nuances can help franchisees set realistic expectations and develop effective business strategies.