What are the 'Out of Territory Rules' referenced in the Bee Organized FDD?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Number of Hours 2,643 | | Above: 9 (40.9%) Below: 13 (59.1%) | 2,062 | 9,139 | 225 | | | | 1 The data represented in this table is for all 2024 Calendar Year Operational Franchise Outlets. During the 2024 Calendar Year we had a total of 22 Operational Franchise Outlets. The number of territories that these Operational Franchise Outlets operate range from a low of one to a high of 12 Territories. 2 The high Gross Sales, number of Projects, and number of Hours represents the data of the Dallas Outlet, which operates in an
Operating Territory comprised of five Territories. Of the Gross Sales reported for the Dallas Outlet, 0.4% of the Gross Sales is from Territory 1 which is comprised of 48,040 Qualified Households, 3.0% of the Gross Sales is from Territory 2 which is comprised of 58,793 Qualified Households, 8.2% of the Gross Sales is from Territory 3 which is comprised of 55,040 Qualified Households, 46.8% is from Territory 4 which is comprised of 57,083 Qualified Households, 22.1% is from Territory 5 which is comprised of 57,748 Qualified Households, and 19.5% of the Gross Sales is from outside of the Operating Territory and within
a 15 mile radius of the Operating Territory, pursuant to our Out of Territory Rules. 3 The low Gross Sales, number of Projects, and number of Hours represents the data of the New Braunfels Outlet, which operates in an Operating Territory comprised of two Territories. Of the Gross Sales reported for the New Braunfels Outlet, 35% of the Gross Sales is from Territory 1 which is comprised of 41,255 Qualified Households, 36% of the Gross Sales is from Territory 2 which is comprised of 35,646 Qualified Households, and 29% of the Gross Sales is from outside of the Operating Territory and within a 15 mile radius of the Operating Territory, pursuant to our Out of Territory Rules.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the 'Out of Territory Rules' allow franchisees to generate gross sales from outside their designated operating territory, specifically within a 15-mile radius of that territory. This is highlighted in Item 19, which discusses the financial performance of various outlets. For example, the Dallas Outlet, operating in five territories, generated 19.5% of its gross sales from outside its operating territory but within a 15-mile radius, in accordance with Bee Organized's Out of Territory Rules. Similarly, the New Braunfels Outlet, operating in two territories, derived 29% of its gross sales from outside its territory but within the same 15-mile radius, also following these rules. The Oklahoma City Outlet reported 38.3% of gross sales from outside its territory but within a 15 mile radius.
For a prospective Bee Organized franchisee, this means there is an opportunity to expand their customer base beyond their initially assigned territory. The 15-mile radius provision provides a buffer zone where they can still market and provide services, potentially increasing their revenue. This is particularly relevant in areas where the franchisee's territory may not be densely populated or where there is demand for Bee Organized's services in neighboring areas. The financial performance data from existing outlets, such as Dallas and New Braunfels, suggests that a significant portion of revenue can come from these out-of-territory sales.
However, it's important for franchisees to understand the specifics of these rules. While the FDD mentions the 15-mile radius, it does not detail any restrictions or requirements for out-of-territory marketing or operations. Franchisees should clarify with Bee Organized the exact terms of these rules, including any potential limitations on marketing activities, service offerings, or customer acquisition efforts outside their primary territory. Understanding these details is crucial for developing a comprehensive business plan and maximizing revenue potential.
In the broader context of franchising, allowing franchisees to operate within a limited radius outside their territory is not uncommon. It provides franchisees with some flexibility to capture additional market share while still protecting the core territory rights of other franchisees. However, the specific terms and conditions can vary significantly between franchise systems, making it essential for prospective franchisees to fully understand Bee Organized's specific Out of Territory Rules.