For a Bee Organized franchise, what is the difference between a 'New' and 'Operational' outlet?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
would qualify as an Operational Company Owned Outlet during the 2024 Calendar Year.
- (q) Operational Franchise Outlet means, as to a particular Calendar Year, a Franchise Outlet that was open and in operation prior to the commencement of the Calendar Year. For example, if a Franchise Outlet first opened for business in February 2023, as to the 2023 Calendar Year, the Franchise Outlet would qualify as a New Franchise Outlet, see definition above, and not as an Operational Franchise Outlet. If this Franchise Outlet remained in operation throughout the 2024 Calendar Year, it would qualify as an Operational Franchise Outlet during the 2024 Calendar Year.
- (r) Outlet refers to a Bee Organized Business that is either a Company Owned Outlet or a Franchise Outlet, as the context requires.
(s) Project – means a unique transaction wherein a Bee Organized Business provides a Client with a distinct service on-site at the Client's home or a Client designated location, which results in Gross Sales.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the distinction between a 'New' and 'Operational' franchise outlet is based on whether the outlet was open and operating prior to the start of a given calendar year. A 'New Franchise Outlet' is one that first opened and commenced operations during the calendar year. An 'Operational Franchise Outlet,' on the other hand, is one that was open and in operation before the beginning of the calendar year.
For example, if a Bee Organized franchise opened in February 2023, it would be classified as a 'New Franchise Outlet' for the 2023 calendar year. However, if that same franchise remained in operation throughout 2024, it would then be considered an 'Operational Franchise Outlet' during the 2024 calendar year. This distinction is important because Bee Organized uses these classifications in their financial performance representations.
Specifically, when Bee Organized presents financial data in Item 19 of the FDD, they often separate the performance of 'Operational Franchise Outlets' from 'New Franchise Outlets.' This allows prospective franchisees to better understand the potential financial performance of established locations versus those that are still in their initial year of operation. The FDD states that in 2024, Bee Organized had 34 franchise outlets, with 22 classified as 'Operational Franchise Outlets' and 12 as 'New Franchise Outlets.'
It is important to note that Bee Organized does not include data for 'New Franchise Outlets' that were not open for the full calendar year in their analysis of 'Operational Franchise Outlets.' This ensures that the financial data presented for 'Operational Franchise Outlets' reflects a full year of operation, providing a more accurate representation of their performance. Prospective franchisees should carefully review Item 19 to understand the financial performance of both 'New' and 'Operational' Bee Organized franchise outlets and consider how these classifications may impact their own potential financial results.