What are the ongoing obligations of a Bee Organized franchisee in promoting the business and goodwill?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee shall, at all times, ensure that all advertising and promotion of the Franchised Business by Franchisee is completely factual and conforms to the highest standards of ethical advertising, and is in conformity with Franchisor's standards and specifications.
Franchisee shall refrain from any business practice, advertising practice, or personal conduct that may be injurious to Franchisor, the System, Bee Organized Businesses, and/or the Licensed Marks.
Franchisor, in Franchisor's sole discretion, shall possess, among other things, the unilateral right to reject any and all advertising relating to the Franchised Business, Franchisor, the System, Bee Organized Businesses and/or using the Licensed Marks.
- (1) If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee's Operating Territory or Franchisee's Bee Organized Business Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined by the Advertising Cooperative;
- (2) Franchisor may establish foundational and organizational requirements of the Advertising Cooperative including voting provisions that allows the Advertising Cooperative to make decisions based on the simple majority vote (one vote per franchisee Bee Organized Business located within the designated area of the Advertising Cooperative) with a quorum constituting 25% of those franchisees within the Advertising Cooperative;
- (3) Unless otherwise authorized and approved by Franchisor in writing, each Advertising Cooperative shall be organized for the exclusive purpose of administering marketing programs and the development of media (all subject to the review and approval of Franchisor) for use by members of the Advertising Cooperative in local or regional marketing;
- (4) If at the time of execution of this Agreement an Advertising Cooperative has been established for a geographic area that includes, in whole or in part, Franchisee's Bee Organized Business location or Operating Territory, or if such Advertising Cooperative is established during the Term of this Agreement, Franchisee shall fully participate in the Advertising Cooperative and Franchisee shall execute, at the request of Franchisor, all documents required by Franchisor and Franchisee shall become a member of the Advertising Cooperative subject to the terms of those documents;
- (5) Franchisee shall contribute to the Advertising Cooperative in the amounts as determined and required by the Advertising Cooperative or, otherwise in accordance with those documents governing the operation of the Advertising Cooperative; provided, however, Franchisee's contributions to the Advertising Cooperative shall not exceed Franchisee's local minimum marketing obligations set forth
in Article 9.B. of this Agreement and Franchisee's contributions to the Advertising Cooperative shall count toward satisfaction of Franchisee's minimum local marketing obligations set forth in Article 9.B.; (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor. All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative. The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.C.;
Franchisee agrees that with regard to the Franchised Business, all client lists, including the contents and information contained in all client lists, constitute Confidential Information and an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term, and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods, and products conceived or developed by Franchisee, any Owner, and/or Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees relating to the development and operation of Bee Organized Businesses and the System. Franchisee hereby assigns to Franchisor, and Franchisee agrees to procure an assignment of any such ideas, concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 11.F. from each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees. Franchisor shall have no obligation to tender any lump sum payment, on-going payments, or any other consideration to Franchisee, any Owner, each Owner and Franchisee's affiliates, officers, directors, shareholders, partners, agents, members, representatives, independent contractors, servants and employees with respect to any such idea, concept, method, technique or product. Franchisee agrees that Franchisee shall not use, or allow any other person or entity to use, any such concept, method, technique, or product without obtaining Franchisor's prior written approval.
Franchisee shall maintain during the Term and preserve for at least three years from the dates of their preparation, full, complete and accurate books, records, and accounts from the Franchised Business. Such records shall be maintained and preserved in the form and manner by Franchisor in the Operations Manual or otherwise in writing.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees have several ongoing obligations related to promoting the business and maintaining its goodwill. Franchisees must ensure that all advertising and promotion of their Bee Organized business is completely factual, conforms to the highest standards of ethical advertising, and aligns with Bee Organized's standards and specifications. Bee Organized retains the right to reject any advertising related to the franchised business, the franchisor, the system, or the licensed marks. Franchisees must also avoid any business practice, advertising practice, or personal conduct that could harm Bee Organized, the system, or the licensed marks. These stipulations ensure that franchisees maintain a consistent brand image and ethical standards in their promotional activities.
Bee Organized franchisees are also required to comply with any established Advertising Cooperative. If such a cooperative exists in their operating territory, franchisees must participate and contribute financially as determined by the cooperative, although these contributions count toward the franchisee's minimum local marketing obligations as outlined in Article 9.B. The Advertising Cooperative is responsible for administering marketing programs and developing media for local or regional marketing, subject to Bee Organized's review and approval. Franchisees must submit required statements and reports to both the Advertising Cooperative and Bee Organized. This structure ensures coordinated marketing efforts and adherence to brand standards across different regions.
Furthermore, Bee Organized franchisees must disclose to the franchisor any ideas, concepts, methods, or products they conceive or develop related to Bee Organized businesses and the system. These innovations are then assigned to Bee Organized, which has no obligation to provide any compensation for them. Franchisees are prohibited from using these concepts without prior written approval from Bee Organized. This clause protects Bee Organized's intellectual property and ensures that all innovations benefit the entire system rather than individual franchisees. Franchisees must also maintain accurate records of their business operations for at least three years, following the format specified in the Operations Manual, allowing Bee Organized to monitor compliance and performance.