Does Bee Organized grant franchisees an exclusive territory?
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. The marketing of your Bee Organized Business must be targeted to your Operating Territory and you are not permitted to directly solicit clients outside of your Operating Territory. Provided that you do not engage in any Direct Solicitation of clients outside of your Operating Territory or within the Operating Territory of another Bee Organized Business, you may provide, subject to our written approval, Approved Services and Products within an Open Area, subject to the following definitions, rules, and limited circumstances:
- (a) You cannot engage in any Direct Solicitations outside of your Operating Territory. The term "Direct Solicitation" refers to and means "communications and/or contacts occurring through in person contact, telephone, mail, e-mail, direct mail, distributed print media, digital media and/or other forms of marketing directed toward clients, potential clients or referral sources of a Bee Organized Business";
- (b) You cannot provide Approved Services and Products in the operating territory of another Bee Organized Business (an "Assigned Area");
- (c) An "Open Area" is a geographic area that (i) is not an Assigned Area; and (ii) is located within a 15 mile radius of your Operating Territory;
- (d) Unless otherwise directed by us at any time, from time to time, and in our sole direction, you may provide Approved Services and Products to a client (an "Out of Territory Client") in an Open Area; and
- (e) Once an Open Area becomes an Assigned Area you will no longer be authorized or eligible to provide Approved Services and Products to any clients within the Open Area and you must turn over to us, for the benefit of another Bee Organized Business franchisee, all information and records related to clients in the Open Area.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Bee Organized grants the franchisee an operating territory, the franchisee may face competition from other franchisees, outlets that Bee Organized owns, other distribution channels, or competitive brands that Bee Organized controls. However, Bee Organized states that, during the term of the Franchise Agreement, provided the franchisee is not in default, Bee Organized will not open or operate a Bee Organized Business, nor grant another franchisee the right to do so, within the franchisee's Operating Territory.
Bee Organized and its affiliates retain specific rights, including operating Bee Organized Businesses outside the franchisee's Operating Territory, even if near the territory. They can also affiliate with other businesses, even those offering similar services, within the franchisee's territory, as long as they do not use Bee Organized's Licensed Marks. Bee Organized can also use alternative channels of distribution such as internet sales or big box retailers within or outside the Operating Territory. They also reserve the right to service national corporate accounts within or outside the franchisee's territory.
The franchisee must operate their Bee Organized Business and provide services exclusively within their assigned Operating Territory and target marketing efforts accordingly. Direct solicitation of clients outside the territory is prohibited. However, with written approval, franchisees may provide services in an "Open Area" which is defined as a geographic area that is not an Assigned Area and is located within a 15 mile radius of the franchisee's Operating Territory. Once an Open Area becomes an Assigned Area, the franchisee must cease providing services there and turn over client information to Bee Organized for the benefit of the new franchisee.
Bee Organized does not restrict itself from soliciting or accepting orders from clients inside the franchisee's territory and will not compensate the franchisee for such sales. Bee Organized also states that it does not have plans to operate or franchise a business under different trademarks that would sell similar services to those offered by the franchisee.