What obligations must a Bee Organized franchisee satisfy before a transfer can be approved?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
cient business experience, aptitude and financial resources to own and operate a Bee Organized Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners and spouses may not own or operate, or intend to own or operate, a Competitive Business. Franchisee agrees that Franchisor may condition approval of a Transfer upon Franchisee's satisfaction (either before, or contemporaneously with, the effective date of the Transfer) of the following:
(1) Franchisee must provide written notice to Franchisor of the proposed Transfer of this Agreement at least 30 days prior to the Transfer, and Franchisee must have also satisfied the obligations set forth in Article 14.F. below;
(2) All accrued monetary obligations of Franchisee and all other outstanding obligations to Franchisor and/or Franchisor's affiliates under this Agreement and the Ancillary Agreements must be satisfied in a timely manner, and Franchisee must satisfy all trade, supplier, and vendor accounts and other debts, of whatever nature or kind, in a timely manner;
(3) Franchisee, each Owner, and each Spouse must not be in default or material breach of this Agreement or the Ancillary Agreements;
(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;
(8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
(9) Franchisee, each Owner, and each Spouse shall remain liable for all obligations to Franchisor set forth in this Agreement;
(10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers and/or any other applicable employees of transferee's Bee Organized Business must complete any training programs then in effect for franchisees of Bee Organized Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
(11) Franchisee must pay a fixed sum of $15,000 to Franchisor (the "Transfer Fee");
(12) Franchisor's approval of the material terms and conditions of the Transfer, and Franchisor determ
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee must meet several conditions before a transfer of their franchise can be approved. First, the franchisee must provide written notice to Bee Organized of the proposed transfer at least 30 days before it occurs and fulfill obligations outlined in Article 14.F. All accrued monetary obligations and outstanding debts to Bee Organized and its affiliates must be satisfied promptly, including trade, supplier, and vendor accounts. The franchisee, each owner, and their spouses must not be in default or in material breach of the Franchise Agreement or any associated agreements.
Furthermore, the proposed transferee must agree to be bound by all the terms and conditions of the existing Franchise Agreement. Each owner of the transferee, along with their spouses, must personally execute the Franchise Owner and Spouse Agreement and Guaranty. All obligations of the franchisee under the Franchise Agreement and related ancillary agreements must be assumed by the transferee, each individual owner of the transferee, and their respective spouses in a manner satisfactory to Bee Organized. The franchisee, each owner, and each spouse must execute a General Release, releasing Bee Organized from any claims arising on or before the transfer date.
Additional conditions include the possibility that the transferee may need to execute Bee Organized’s then-current standard form Franchise Agreement if the transfer involves the Franchise Agreement itself, substantially all of the assets of the franchised business, or a controlling interest in the franchisee. The transferee, at its own expense, may be required to upgrade the Administrative Office to meet Bee Organized’s current standards. The transferee and its Managing Owner, managers, and other applicable employees must complete any required training programs. The franchisee must also pay a $15,000 transfer fee to Bee Organized. Finally, employees, directors, officers, independent contractors, and agents of the transferee who will have access to confidential information must execute a Confidentiality Agreement.