What is the definition of a 'Franchise Outlet' for a Bee Organized business?

According to Bee Organized's 2025 Franchise Disclosure Document, a 'Franchise Outlet' refers to a Bee Organized business that operates under a Franchise Agreement, distinguishing it from a 'Company Owned Outlet.' This definition is crucial for understanding the financial performance representations provided in Item 19 of the FDD, as the document often separates data and analysis for Franchise Outlets versus Company Owned Outlets.

Bee Organized further categorizes Franchise Outlets based on their operational history within a calendar year. A 'New Franchise Outlet' is one that opens and commences operations for the first time during a specific calendar year. For instance, if a Franchise Outlet opens in February 2023, it's considered a New Franchise Outlet for the 2023 calendar year. Conversely, an 'Operational Franchise Outlet' is one that has been open and in operation prior to the start of a calendar year. Using the same example, the Franchise Outlet that opened in February 2023 would be classified as an Operational Franchise Outlet during the 2024 calendar year, assuming it remained in operation.

These distinctions are important because Bee Organized uses these categories when presenting financial performance data. For example, Item 19 may include data specifically for 'Operational Franchise Outlets' that have been operating for a certain number of years, while excluding data from 'New Franchise Outlets' that have not been open for the entire calendar year. This allows prospective franchisees to better understand the potential performance of established Bee Organized businesses, as opposed to newer ones that may still be ramping up. Franchisees should pay close attention to how Bee Organized defines and uses these terms when reviewing the financial performance representations in the FDD.