If Bee Organized appoints a manager, does this relieve the franchisee of their obligations?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. Franchisor's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Franchisor's right to terminate the Franchise pursuant to Article 16. Franchisor is not liable for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the appointment of a manager by Bee Organized does not relieve the franchisee of their obligations under the Franchise Agreement. This applies whether the manager is appointed due to the franchisee's death or disability, or if the franchised business is not being managed by an approved Managing Owner or Operating Manager.
Specifically, Bee Organized is authorized, but not required, to appoint a manager to maintain operations on behalf of the franchisee if the business is not being managed by a qualified individual. This action does not waive the franchisee's responsibilities or Bee Organized's right to terminate the franchise agreement. The franchisee remains responsible for fulfilling all obligations outlined in the agreement, even while the appointed manager is in place.
Furthermore, the FDD states that Bee Organized will not be liable for any debts, losses, costs, or expenses incurred during the period when the appointed manager is overseeing the Bee Organized business. The franchisee is still responsible for maintaining sufficient working capital to meet their obligations under the agreement, regardless of who is managing the business. This ensures that franchisees cannot avoid their contractual duties simply by having a manager appointed by Bee Organized.