What does 'Outlet' refer to in the context of a Bee Organized business?

According to Bee Organized's 2025 Franchise Disclosure Document, an 'Outlet' refers to a Bee Organized business, which can be either a Company Owned Outlet or a Franchise Outlet, depending on the context. A 'Company Owned Outlet' is owned directly or indirectly by Bee Organized Enterprises, its affiliates, or individuals identified in Item 2 of the FDD, including joint ventures or managed outlets. A 'Franchise Outlet' is a Bee Organized business operated under a Franchise Agreement but not owned by the company.

Understanding the distinction between these types of outlets is important for prospective franchisees because the FDD provides financial performance representations for both Company Owned Outlets and Franchise Outlets. For example, Item 19 includes an analysis of results for the Company Owned Outlet, detailing its operations in Overland Park, Kansas, and noting that it operates in the equivalent of three territories comprising approximately 150,388 qualified households. The FDD also presents data for Operational Franchise Outlets that have been operating for over five full calendar years.

Bee Organized also uses the term 'Outlet' in the context of calculating financial metrics. For instance, 'Hours' is defined as the amount of time a Bee Organized business spends working on projects for clients, calculated by dividing the total Gross Sales of an Outlet during the Calendar Year by the average billable hour rate of all Outlets in the Bee Organized franchise System, which is $75 per hour. Similarly, the number of 'Projects' provided by a Bee Organized business during a particular Calendar Year is calculated by the total Hours spent by an Outlet on working on Projects during the Calendar Year divided by the average number of hours per project of all Outlets in the Bee Organized franchise System, which is 18.

Therefore, when reviewing the FDD, a potential franchisee should pay close attention to whether the data presented pertains to Company Owned Outlets, Franchise Outlets, or both, as this can significantly impact their understanding of potential financial performance and operational characteristics. The FDD clearly defines these terms to provide a basis for the financial performance representations, but it is crucial to understand the differences to accurately interpret the data.