factual

If Bee Organized doesn't designate a supplier in the Manuals, what must a franchisee do?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

We may designate ourselves and our affiliates as exclusive suppliers of source restricted goods and services. We may designate ourselves or a third party as exclusive supplier irrespective of the existence of competing suppliers. If, in the Manuals, we do not designate a supplier for a particular item, you will purchase all such products, supplies and services from suppliers who meet our specifications and standards. We reserve the right to implement a contact center directed by us, our affiliates, or our designees in the future for an additional cost and on an opt in basis. If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.

Currently, we are not, and our affiliates are not approved suppliers of the source restricted goods and services identified below. Currently no officer of ours owns an interest in any of our designated suppliers.

If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval. When evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the supplier's quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the supplier's approval, in our sole determination, will allow us to advance the overall interests of the System.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, if the manuals do not designate a specific supplier for certain products, supplies, and services, franchisees must purchase those items from suppliers who meet Bee Organized's standards and specifications. This ensures consistency and quality across all Bee Organized franchises.

Prospective franchisees need to understand the process for getting a new supplier approved if they wish to use one not already listed. The franchisee must submit a written request for approval, along with any additional information Bee Organized requests. Bee Organized may charge a supplier review and testing fee and may request samples for testing and documentation for evaluation. Bee Organized also reserves the right to inspect the supplier's facilities.

Bee Organized will then notify the franchisee of their decision within 60 days of receiving the request, information, and samples. Bee Organized may withhold approval at their discretion. In evaluating a supplier, Bee Organized considers the supplier's ability to meet their standards, specifications, and production requirements, their quality control, and whether approving the supplier will advance the overall interests of the Bee Organized system.

This process highlights the importance of carefully reviewing the approved supplier list and understanding the criteria for adding new suppliers. Franchisees should be prepared to potentially incur costs and delays if they choose to seek approval for non-designated suppliers. Franchisees should also inquire about the specific standards and specifications that suppliers must meet to ensure compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.