What is the geographic relationship between the 'Open Area' and the 'Assigned Area' for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
the Approved Services and Products on behalf of clients located within Franchisee's Operating Territory. The marketing of the Franchised Business must be targeted to Franchisee's Operating Territory and, at all times, must conform and comply with, among other things, the restrictions set forth in Article 9.G. of this Agreement;
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of clients or potential clients outside of Franchisee's Operating Territory or, within the Operating Territory of another Bee Organized Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a client in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with clients previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Bee Organized Business, all information and records related to the Approved Services and Products provided within the Open Area.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, an 'Open Area' surrounds a franchisee's 'Operating Territory,' allowing the franchisee to provide services there under certain conditions. An 'Assigned Area' is defined as the operating area, designated area, and/or territory of current and future Bee Organized Businesses other than the Operating Territory of Franchisee's Bee Organized Business.
Specifically, a Bee Organized franchisee may provide approved services and products to clients in an Open Area surrounding their Operating Territory, provided they do not engage in direct solicitation of clients outside their Operating Territory or within another Bee Organized Business's territory, and do not violate Article 9 of the Franchise Agreement. However, Bee Organized retains the right to direct a franchisee to discontinue services in an Open Area at any time, for any reason.
Once an Open Area becomes an Assigned Area, the franchisee must stop communicating with clients previously serviced in that area and turn over all related information and records to Bee Organized for the benefit of the franchisor or another franchisee. This means that while a franchisee can initially operate in an Open Area, this is subject to change, and the franchisee may be required to relinquish clients and information if the area is assigned to someone else.