After the expiration or termination of the Bee Organized Franchise Agreement, what is the geographic scope of the restriction on participating in a competitive business?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
sonally guarantee your obligations to us under the Franchise Agreement. You must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with a Bee Organized Business, and that for 24 months after the expiration or termination of the Franchise Agreement with said period being tolled during any periods of non-compliance, you will not participate in any competitive business located within and/or servicing clients located within your Operating Territory and a 25 mile radius surrounding your Operating Territory. Further you will not participate in any competitive business located within and/or servicing clients located within the operating territory of any other Bee Organized Business. Your managers will be required by us to sign a confidentiality agreement.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may only sell the products and services specified or approved by us in writing. You must sell the products and services required by us. We can change the products and services that you must offer. There is no limitation on our right to change the products and services offered by Franchised Business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, if the Franchise Agreement expires or terminates, the franchisee is restricted from participating in a competitive business. This restriction applies for 24 months, with the period being tolled during any periods of non-compliance. The geographic scope includes the franchisee's Operating Territory and a 25-mile radius surrounding it. Additionally, the restriction extends to the operating territory of any other Bee Organized Business.
This means a former Bee Organized franchisee cannot operate or be involved in a competing business within their original territory, a 25-mile buffer zone, or any other existing Bee Organized territory for two years after their franchise agreement ends. This non-compete agreement is designed to protect Bee Organized's market share and brand integrity by preventing former franchisees from using their knowledge and experience gained during the franchise term to unfairly compete with existing franchisees.
However, the FDD also states that if a court deems the restricted territory too broad, the restriction will be limited to the franchisee's Operating Territory plus a 25-mile radius surrounding it. This clause acknowledges that overly broad non-compete agreements may not be enforceable under the law, and it provides a fallback position to ensure that the restriction is still valid to the maximum extent possible. Prospective franchisees should be aware of these restrictions and consider their implications for future business ventures after leaving the Bee Organized system.