What defines a 'Franchise Outlet' within the Bee Organized franchise system?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Franchise Outlet refers to a Bee Organized Business operated under a Franchise Agreement that is not a
Company Owned Outlet.
- (q) Operational Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that was open and in operation prior to the commencement of the Calendar Year.
For example, if a Franchise Outlet first opened for business in February 2023, as to the 2023 Calendar Year, the Franchise Outlet would qualify as a New Franchise Outlet, see definition above, and not as an Operational Franchise Outlet.
If this Franchise Outlet remained in operation throughout the 2024 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2024 Calendar Year.
- (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 'Franchise Outlet' refers to a Bee Organized business that operates under a Franchise Agreement and is not owned by the company. This distinguishes it from a 'Company Owned Outlet,' which is owned either directly or indirectly by Bee Organized Enterprises, its affiliates, or individuals listed in Item 2 of the FDD. Company Owned Outlets also include joint ventures partially owned or managed by Bee Organized or its affiliates.
Bee Organized also categorizes Franchise Outlets based on their operational status within a calendar year. An 'Operational Franchise Outlet' is one that was open and operating before the start of a given calendar year. For example, if a franchise opened in February 2023, it would be considered a 'New Franchise Outlet' for the 2023 calendar year. However, if it remained open throughout 2024, it would then be classified as an 'Operational Franchise Outlet' for that year.
Understanding these definitions is important for prospective franchisees, especially when reviewing the financial performance representations in Item 19 of the FDD. Bee Organized reports financial data separately for Company Owned Outlets, Operational Franchise Outlets, and New Franchise Outlets. This distinction allows potential franchisees to better assess the performance of established franchises versus newer ones, and to understand the differences between company-run and franchisee-run businesses. The FDD clarifies that financial data for New Franchise Outlets is excluded if they were not open for the entire calendar year, focusing the performance analysis on outlets with a full year of operation.