Where must Bee Organized franchisees purchase System Supplies?

According to Bee Organized's 2025 Franchise Disclosure Document, franchisees must purchase System Supplies from specific, designated sources. System Supplies, as defined by Bee Organized, must be purchased from Bee Organized itself, its affiliates, or its designated suppliers. This requirement ensures that franchisees maintain both an initial and ongoing inventory of System Supplies that meet the franchisor's standards.

This restriction is part of a broader system of source restrictions that Bee Organized imposes on its franchisees. The FDD estimates that approximately 75% of a franchisee's initial purchases and leases when establishing the franchise and about 50% of ongoing operating expenses will be subject to these sourcing restrictions. These restrictions are in place to maintain quality, service standards, and overall system development within the Bee Organized franchise network.

Bee Organized retains the right to modify the list of approved or designated suppliers, communicating these changes through various means, including written or electronic correspondence and updates to the manuals. While Bee Organized may negotiate purchase agreements with suppliers, there are currently no purchase or supply agreements in effect, nor are there any purchasing or distribution cooperatives that franchisees are required to join. Franchisees do not receive material benefits for using designated or approved suppliers.

It's important to note that Bee Organized and its affiliates may receive rebates, payments, or other benefits from suppliers based on franchisee purchases. As of the fiscal year ending December 31, 2024, Bee Organized had not received revenue from suppliers based on franchisee purchases of source-restricted products or services. Prospective franchisees should consider these sourcing restrictions and potential revenue streams for the franchisor when evaluating the Bee Organized franchise opportunity.