What is the dependency for a Bee Organized franchisee to operate outside of their territory?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of clients or potential clients outside of Franchisee's Operating Territory or, within the Operating Territory of another Bee Organized Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a client in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with clients previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Bee Organized Business, all information and records related to the Approved Services and Products provided within the Open Area.
Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee's ability to operate outside of their designated territory is contingent upon several conditions. Primarily, the franchisee must not engage in direct solicitation of clients or potential clients outside their territory or within the operating territory of another Bee Organized business. Additionally, they must not violate any restrictions outlined in Article 9 of the Franchise Agreement.
Furthermore, unless otherwise directed by Bee Organized, the franchisee may provide approved services and products to clients in an open area surrounding their operating territory. However, Bee Organized retains the right to instruct the franchisee to discontinue services in an open area at any time, for any reason, with written notice. Once an open area becomes an assigned area, the franchisee must cease communication with clients previously serviced in that area and transfer all related information and records to Bee Organized or another franchisee.
These out-of-territory rules do not expand the non-exclusive franchise rights granted in Article 2 of the agreement, nor do they alter the franchisee's operating territory. In the event of any conflict between the out-of-territory rules and Article 2, Article 2 takes precedence. This ensures that the franchisee's primary focus remains within their designated operating territory, while allowing for limited service to clients in adjacent open areas under specific conditions and at Bee Organized's discretion. These rules are designed to protect the territorial rights of all franchisees and maintain brand consistency.