To what extent are transfer fees collectable for a Bee Organized franchise?

According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee of $15,000 to Bee Organized when transferring their franchise. This fee is a fixed sum. The definition of "Transfer Fee" is detailed in Article 14.C.(11) of the franchise agreement.

In addition to the transfer fee, the transferee is responsible for several other expenses. They must cover the costs of improving, modifying, refurbishing, renovating, remodeling, or upgrading the non-residential Administrative Office to meet Bee Organized's current standards. These upgrades must be completed within a timeframe specified by Bee Organized. The transferee and their management must also complete any training programs that Bee Organized requires for its franchisees.

Furthermore, Bee Organized must approve the material terms and conditions of the transfer, ensuring that the price and payment terms are not detrimental to the future operations of the franchise. Employees, directors, officers, independent contractors, and agents of the transferee who will access confidential information must also execute a confidentiality agreement. The existing franchisee remains liable for all obligations to Bee Organized unless otherwise released.

Bee Organized also stipulates that the transferee must adhere to all terms and conditions of the Franchise Agreement. The owners of the transferee, along with their spouses, are required to personally execute the Franchise Owner and Spouse Agreement and Guaranty. All obligations of the franchisee under the agreement and any ancillary agreements must be assumed by the transferee and their owners in a manner satisfactory to Bee Organized. The franchisor's approval is contingent on these conditions being met, ensuring a smooth transition and continued adherence to Bee Organized's standards.