Can the designated single supplier for Bee Organized franchisees be the franchisor or its affiliates?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisor reserves the right to designate, from time to time, a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and Vehicles and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees of the System and that Franchisor may use all amounts so received without restriction and for any purpose, including Franchisor's profit; and
- (6) If Franchisee proposes or requests that Franchisor consider the approval of products, services, equipment, supplies, suppliers and/or distributors for use in the Franchised Business where such products, services, equipment, supplies, suppliers and/or distributors are not, presently, at the time of Franchisee's request, approved for use in the System, Franchisee: (a) must provide Franchisor with a written request where Franchisee specifies the product, service, equipment, supply, supplier and/or distributor, the reason for Franchisee's request; (b) shall timely submit to Franchisor such information, reports, specifications, and samples as Franchisor, in Franchisor's Reasonable Business Judgment requests; and (c) shall pay to Franchisor a supplier evaluation fee per requested product, service, equipment, supply, supplier and/or distributor to be considered including, but not limited to, the supplier evaluation fees that Franchisor, in Franchisor's Reasonable Business Judgment, establishes and assesses based on, among other things, the administrative costs and time associated with evaluating, assessing and testing the proposed product, service, equipment, supply, supplier and/or distributor including, but not limited to Franchisor's internal employees and independent third parties engaged and/or retained by Franchisor for evaluation and testing.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized reserves the right to designate a single supplier or distributor for various services, products, equipment, supplies, or materials, including System Supplies and Vehicles. This designated supplier may be Bee Organized itself or its affiliates.
This means that as a franchisee, you may be required to purchase certain items exclusively from a supplier chosen by Bee Organized, which could be the franchisor or a company affiliated with it. This requirement ensures consistency and quality control within the Bee Organized system.
Furthermore, Bee Organized and its affiliates may receive payments from these designated suppliers based on their dealings with franchisees. These payments can be used by Bee Organized for any purpose, including profit.
If a franchisee wishes to propose a new supplier or product not currently approved, they must submit a written request to Bee Organized, provide necessary information and samples, and pay a supplier evaluation fee. This fee covers the costs associated with evaluating and testing the proposed supplier or product.