Can a Bee Organized franchisee face competition from other franchisees?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ar rights to acquire additional franchises.
Territory Rights
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, during the term of the Franchise Agreement, provided that you are not in default of your obligations to us or our affiliates and except as to our Reserved Rights set forth below, we will not open and operate and we will not grant another franchisee the right to open and operate a Bee Organized Business within your Operating Territory.
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D.), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Bee Organized Businesses using the System and Licensed Marks outside your Operating Territory, as we deem appropriate and irrespective of the proximity to your Operating Territory; (b) acquire, be acquired, develop, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to your Bee Organized Business, and after such acquisition, development, merger or affiliation, to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to the Franchised Business (but not utilizing the Licensed Marks) within your Operating Territory; (c) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the outlets, stores, big box retailers, internet, e-commerce, catalog sales, telemarketing, or other direct marketing sales within or outside your Operating
Territory; (d) use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business on behalf of customers of local, regional, and/or national corporate accounts such as big box home improvement retailers and wholesale outlets (referred to as "Corporate Accounts") within or outside your Operating Territory; (e) use the Licensed Marks and System to offer, sell, and provide and grant to others the right to offer, sell, and provide the Approved Services and Products to clients within your Operating Territory if the transaction originated at a location outside of your Operating Territory and/or within the operating territory of another system franchisee; (f) use the Licensed Marks and System and to license others to use the Licensed Marks and System, to engage in all other activities not expressly prohibited by the Franchise Agreement.
Corporate Accounts Program
If we establish a Corporate Accounts Program where we engage in a contract or service agreement with a Corporate Account service provider, we will offer you the opportunity to participate in the program under the guidelines and rules that we develop from time to time and subject to the pricing criteria and requirements that we establish. You will have an option to refuse to participate in Corporate Accounts Programs, but if you do, you agree that we can service the Corporate Accounts in your territory or authorize others, including other franchisees, to perform work for the Corporate Accounts. All pricing and fees charged in connection with Corporate Accounts will be at rates negotiated and determined by us. We or our designee are not obligated to pay you for servicing Corporate Account clients that you have elected not to service under our Corporate Accounts Program.
Soliciting by You Outside Your Territory and Territory Rules
You must operate your Bee Organized Business and provide the Approved Services and Products exclusively within your Operating Territory.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee can face competition from other franchisees under specific circumstances. While Bee Organized grants franchisees an operating territory, this territory is not exclusive. The FDD states that a franchisee "may face competition from other franchisees." However, Bee Organized will not open or grant another franchise the right to open a Bee Organized business within a franchisee's operating territory, provided the franchisee is not in default of their obligations. This offers some territorial protection, but it is not absolute.
Bee Organized also maintains certain "Reserved Rights," allowing them to engage in activities that could potentially impact a franchisee's business. For example, Bee Organized can use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products to clients within a franchisee's Operating Territory if the transaction originated at a location outside of the Operating Territory and/or within the operating territory of another system franchisee. This means that if a client initiates service from outside a franchisee's territory, Bee Organized can fulfill that service within the franchisee's territory, potentially using another franchisee.
Furthermore, the Corporate Accounts Program introduces another avenue for potential competition. If Bee Organized establishes a Corporate Accounts Program, franchisees have the option to participate. However, if a franchisee chooses not to participate, Bee Organized reserves the right to service those Corporate Accounts within the franchisee's territory or authorize others, including other franchisees, to perform the work. This highlights the importance of carefully considering participation in the Corporate Accounts Program, as declining to participate could open the door for other franchisees to operate within your territory through these accounts.