If Schedule 1 is not signed by Bee Organized, how is the Operating Territory determined?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the non-exclusive license, right and obligation to develop and operate a Bee Organized Business within the operating territory designated and set forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;
- (4) Franchisee may only operate the Franchised Business within Franchisee's Operating Territory and, without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products within Franchisee's Operating Territory from Franchisor designated and authorized Vehicles, the System standards designated by Franchisor, and in accordance with the requirements designated by Franchisor in the Operations Manual;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the determination of the Operating Territory is contingent on Schedule 1 being properly executed. Schedule 1 of the Franchise Agreement is where the Operating Territory is designated. However, if Schedule 1 does not specifically identify and designate an Operating Territory, or if Schedule 1 is not signed by Bee Organized, then the Operating Territory will be determined by Bee Organized in its Reasonable Business Judgment.
This means that if the franchisee and Bee Organized do not agree on and document the territory in Schedule 1, Bee Organized retains the right to define the territory. This determination will be based on what Bee Organized considers a reasonable business decision.
For a prospective franchisee, this underscores the importance of clearly defining and agreeing upon the Operating Territory before signing the Franchise Agreement. Failure to do so cedes control over a critical aspect of the franchise to Bee Organized. The franchisee's administrative office must be located within the Operating Territory and be approved by Bee Organized. The franchisee may only operate the Franchised Business within Franchisee's Operating Territory and may only offer and sell the Approved Services and Products within Franchisee's Operating Territory from Franchisor designated and authorized Vehicles, the System standards designated by Franchisor, and in accordance with the requirements designated by Franchisor in the Operations Manual.