According to Bee Organized's 2025 Franchise Disclosure Document, if a franchisee files a voluntary petition in bankruptcy, the franchise agreement can be automatically and immediately terminated by Bee Organized without notice or opportunity to cure. This is according to Article 16.A.(1)(c) of the agreement. This clause also applies if the franchisee is adjudicated bankrupt or insolvent, or files any petition seeking reorganization, arrangement, liquidation, or similar relief under federal or state law relating to bankruptcy or insolvency.

This means that a Bee Organized franchisee experiencing severe financial distress leading to bankruptcy could lose their franchise rights immediately. The franchisee would not be given a chance to resolve the financial issues or propose an alternative solution. The termination is at Bee Organized's election, meaning they have the option to terminate, but are not obligated to do so.

This type of clause is relatively standard in franchise agreements, as franchisors want to protect their brand and system from the negative impacts of a franchisee's financial failure. Bankruptcy can signal operational issues and potentially damage the reputation of the Bee Organized brand. Prospective franchisees should carefully consider the financial risks associated with operating a Bee Organized franchise and ensure they have sufficient capital and a solid business plan to avoid such a situation. It is important to note that this clause may be subject to certain legal limitations or interpretations depending on the jurisdiction and specific circumstances of the bankruptcy filing.