After the expiration or termination of the Bee Organized Franchise Agreement, for how long is the franchisee prohibited from participating in a competitive business?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, franchisees are restricted from participating in any competitive business for a period of 24 months after the expiration or termination of the Franchise Agreement. This period may be extended if the franchisee violates the non-compete agreement, with the extension lasting for the duration of the prohibited activity. However, if a court deems the 24-month period too long to be enforceable, the restricted period will be reduced to 18 months.
This non-compete agreement applies within the franchisee's Operating Territory and extends to a 25-mile radius surrounding it. It also includes the operating territories of any other Bee Organized businesses that are in operation or under development during any part of the restricted period. If a court finds this territory too broad, the restricted territory will be limited to the franchisee's Operating Territory plus the 25-mile radius.
These restrictions are designed to protect Bee Organized's confidential information, system, and brand reputation. Franchisees acknowledge that engaging in prohibited activities would constitute unfair competition and cause irreparable harm to Bee Organized and its other franchisees. The agreement also specifies that any confidential information must not be used or disclosed, even to immediate family members, to circumvent the agreement's protections.