What constitutes a felony crime that could lead to a Bee Organized franchisee's default?

According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee can be in default if the franchisee or an owner is convicted of a felony crime, or pleads guilty or nolo contendere to a felony crime. This is a standard clause in most franchise agreements, allowing the franchisor to terminate the agreement if the franchisee engages in serious criminal behavior. This clause protects the Bee Organized brand and reputation.

This provision means that any felony conviction of the franchisee or an owner of the franchisee business can trigger a default under the franchise agreement. A 'nolo contendere' plea, also known as 'no contest,' is treated the same as a guilty plea for the purposes of this clause. This gives Bee Organized the right to terminate the franchise agreement, even if the franchisee or owner does not admit guilt but accepts the conviction.

For a prospective Bee Organized franchisee, this highlights the importance of maintaining a clean criminal record. Any past or future felony convictions could jeopardize the franchise. It is also important to note that this clause extends not only to the franchisee but also to any owner of the franchisee entity, meaning that the actions of a business partner could also put the franchise at risk.