If Bee Organized transfers the Franchise Agreement, does the agreement remain in effect?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee and their respective spouses shall personally execute the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1;
(5) All obligations of Franchisee under this Agreement and the Ancillary Agreements shall be assumed by the transferee, each individual owner of transferee, and their respective spouses in a manner satisfactory to Franchisor;
(6) Franchisee, each Owner, and each Spouse must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
(7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Bee Organized Businesses and any other agreements as Franchisor requires.
Such agreements shall supersede this Agreement and its associated agreement in all respects, and the terms of Franchisor's then current agreements may differ from the terms in this Agreement, provided that such agreements shall provide for the same Royalty Fee, Advertising Contributions, and all other financial or monetary obligations established in this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, if the company transfers the Franchise Agreement, the agreement remains in effect under certain conditions. The transferee must adhere to all the terms and conditions outlined in the original agreement. Additionally, the owners and their spouses must personally execute the Franchise Owner and Spouse Agreement and Guaranty.
All obligations of the franchisee under the original agreement and any ancillary agreements are assumed by the transferee, the individual owners of the transferee, and their spouses in a manner satisfactory to Bee Organized. Furthermore, the franchisee, each owner, and each spouse must execute a General Release, releasing Bee Organized from any claims arising on or before the transfer's effective date.
However, Bee Organized has the option to require the transferee to execute the then-current standard form Franchise Agreement for new franchisees, especially if the transfer involves substantially all assets, a controlling interest, or is one of a series of transfers that collectively achieve this. This new agreement would supersede the original, although it must maintain the same Royalty Fee, Advertising Contributions, and other financial obligations as the original agreement. The transferee is also required to improve the Administrative Office to meet Bee Organized's current standards and complete any training programs in effect for franchisees.