What defines an 'Operational Franchise Outlet' for Bee Organized in a particular Calendar Year?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, an 'Operational Franchise Outlet' is defined as a franchise outlet that was open and operating before the start of a specific calendar year. For instance, if a Bee Organized 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 the 2024 calendar year.
This distinction is important because Bee Organized uses these classifications in their financial performance representations. The FDD notes that they do not include data for 'New Franchise Outlets' that were not open for the full 2024 calendar year when reporting financial data for 'Operational Franchise Outlets'. This means that the performance data presented for 'Operational Franchise Outlets' reflects outlets that have been in business for at least one full calendar year.
For a prospective franchisee, understanding this definition is crucial for interpreting the financial performance data presented in Item 19 of the FDD. It clarifies that the data represents established Bee Organized franchises, not new ones still ramping up. This allows potential franchisees to assess the performance of outlets that have had time to establish themselves in their market. Franchisees should consider this when evaluating the potential financial performance of a Bee Organized franchise.