factual

Can Bee Organized modify the System that franchisees must follow?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights Closed Markets, and Multi-Service Events Designated and approved by Franchisor and subject to Franchisor's System standards and requirements which Franchisor may amend, modify, and/or suspend in Franchisor's Reasonable Business Judgment, provided that, at all times, Franchisee is and remains in

compliance with the terms of this Agreement, during the Term of this Agreement, Franchisor will not and Franchisor's affiliates will not operate, or grant a franchisee the right to operate a Bee Organized Business using the Licensed Marks and System within Franchisee's Operating Territory, provided that an Operating Territory has been designated and approved by Franchisor in accordance with the terms of this Agreement;

"Franchisor's Reasonable Business Judgment" means, and relates to any and all decisions, actions and choices made by Franchisor concerning or relating to this Agreement, the System generally, Bee Organized Businesses and/or the Franchised Business where Franchisor undertakes or makes such decision with the intention of benefitting or acting in a way that could benefit the System. When making decisions and/or taking actions in Franchisor's Reasonable Business Judgment, Franchisor may, in addition to all other rights afforded to Franchisor under this Agreement, consider factors, in whole or in part, that include: Franchisor's profits; enhancing the value of the Licensed Marks; increasing client satisfaction; minimizing potential customer confusion as to the Licensed Marks; determining Operating Territory markets; minimizing potential customer confusion as to the location of Bee Organized Businesses; expanding brand awareness of the Licensed Marks; implementing marketing and accounting control systems; and approving products, services, supplies and equipment. Franchisee agrees that when a decision, determination, action and/or choice is made by Franchisor in Franchisor's Reasonable Business Judgment that such decision, determination, action or choice shall take precedence and prevail, even if other alternatives, determinations, actions and/or choices are reasonable or arguably available and/or preferable. Franchisee agrees that in connection with any decision, determination, action and/or choice made by Franchisor in Franchisor's Reasonable Business Judgment that: (a) Franchisor possesses a legitimate interest in seeking to maximize Franchisor's profits; (b) Franchisor shall not be required to consider Franchisee's individual economic or business interests as compared to the overall System; and (c) should Franchisor economically benefit from such decision, determination, action and/or choice that such economic benefit to Franchisor shall not be

Source: Item 23 — RECEIPTS (FDD pages 54–218)

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized can modify the System standards and requirements in its reasonable business judgment. Specifically, Bee Organized can amend, modify, and/or suspend the System standards and requirements. These modifications can be made as long as the franchisee remains in compliance with the terms of the Franchise Agreement.

The FDD defines "Franchisor's Reasonable Business Judgment" as decisions made with the intention of benefitting the Bee Organized System. This includes factors like increasing client satisfaction, enhancing the value of the Licensed Marks, and expanding brand awareness. Bee Organized is not required to consider a franchisee's individual economic or business interests compared to the overall System when making these decisions.

This means that Bee Organized franchisees must adhere to any changes Bee Organized makes to the System, even if those changes impact their individual business interests. While Bee Organized intends to benefit the System as a whole, franchisees should be aware that changes can occur and should factor this into their business planning. Franchisees should maintain open communication with Bee Organized to understand any upcoming changes and how they might affect their operations.

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.