What is the definition of 'Operating Manager' for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Bee Organized Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Bee Organized Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Bee Organized Business. Franchisor's appointment of a manager for Franchisee's Bee Organized Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Bee Organized Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Bee Organized Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Bee Organized Business. Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee who is an individual (not a corporation), their representative must appoint a manager that meets the equivalent of an Operating Manager within 30 days. This appointed manager must then serve and qualify as an Operating Manager and successfully complete the required training program within 60 days of their appointment.
If the Bee Organized business is not managed by a franchisor-approved Operating Manager within that initial 30-day period, Bee Organized has the right, but not the obligation, to appoint a manager to oversee the business on behalf of the franchisee. The franchisee will bear the costs associated with this arrangement until an approved Operating Manager is in place.
It's important to note that even if Bee Organized appoints a manager, the franchisee remains responsible for all obligations under the Franchise Agreement. Bee Organized will not be liable for any debts, losses, or expenses incurred during this period, and they can charge a reasonable fee for their management services, which they can discontinue at any time. The FDD excerpt does not provide a specific definition of 'Operating Manager', but it does specify the requirements that a manager must meet to be considered the equivalent of one.