What is the Operations Non-Compliance Fee for a Bee Organized franchise for all other Operations Violations?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
7.J. REMEDIES FOR NON-COMPLIANCE WITH OPERATIONAL STANDARDS
In addition to all other rights afforded to Franchisor under this Agreement, in connection with any, each, and every violation of any term, provision, and/or operational requirement as set forth in this Article 7 (an
"Operations Violation"), within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor an operations non-compliance fee (the "Operations Non-Compliance Fee") in the amount of: (a) $1,000 for each and every instance/event related to an Operations Violation involving the sale of services and/or products that are not Approved Services and Products; (b) $1,000 for each and every instance/event related to an Operations Violation involving the failure to exclusively use System Supplies, and/or Franchisor designated suppliers; and (c) $450 for all other Operations Violation. Additionally, in each of the foregoing instances, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor all costs and expenses incurred by Franchisor in connection with any inspections, audits, and/or re-inspections directed and/or undertaken by Franchisor for the purpose, as determined by Franchisor in Franchisor's Reasonable Business Judgment, of determining whether or not Franchisee's Operations Violation has been cured in accordance with Franchisor's standards and specifications. The foregoing does not constitute Franchiso
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees may incur an Operations Non-Compliance Fee for violations of operational standards. Specifically, for any Operations Violation related to selling services or products that are not Approved Services and Products, the franchisee will be charged $1,000 for each instance. Similarly, a fee of $1,000 will be levied for each instance of failing to exclusively use System Supplies or designated suppliers.
For all other types of Operations Violations not specifically mentioned above, Bee Organized franchisees will be charged a fee of $450 per violation. These fees are due within 14 days of the franchisor's invoice.
In addition to the Operations Non-Compliance Fee, the franchisee is also responsible for covering all costs and expenses incurred by Bee Organized for any inspections, audits, or re-inspections deemed necessary by the franchisor to determine if the Operations Violation has been corrected according to their standards. The FDD emphasizes that these remedies do not limit Bee Organized's other rights and remedies outlined in the agreement, and all rights are cumulative.