Who owns the Business Management System Data for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) As between Franchisee and Franchisor, Franchisor is and shall be the exclusive owner of the Business Management System Data, except that Franchisee shall store and maintain such data in accordance with all applicable local, state and federal privacy, data collection and solicitation laws. Upon expiration or termination of this Agreement for any reason, Franchisee shall preserve and maintain the Business Management System Data for the purpose of transferring such data to Franchisor;
- (4) At all times, Franchisee shall provide and permit Franchisor to maintain direct and independent access to the Business Management System and the Business Management System Data and to duplicate and evaluate the data;
- (5) Franchisee shall upgrade, replace and modify the Business Management System at the request of Franchisor and in accordance with Franchisor's written instructions;
- (6) Other than permitting access to employees of the Franchised Business for the purpose of conducting the authorized operations of the Franchised Business, Franchisee shall not permit or allow any third party to access, use or duplicate the Business Management System or the Business Management System Data;
- (7) Franchisee shall keep and maintain the Business Management System and the Business Management System Data as secret and confidential and, Franchisee shall maintain security precautions to maintain the confidentiality of the Business Management System and the Business Management System Data; and
- (8) In no event shall Franchisor be liable to Franchisee for any damages, including any lost profits, lost savings, or other incidental or consequential damages, relating to Franchisee's use, or Franchisee's inability to use, the Business Management System even if Franchisor has been advised of the possibility of such damages, or for any claim by any other party including the software manufacturer. The foregoing limitations of liability are intended to apply without regard to whether other provisions of the Agreement have been breached or proven ineffective.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, the franchisor, not the franchisee, is the exclusive owner of the Business Management System Data. However, the franchisee is responsible for storing and maintaining this data in compliance with all applicable local, state, and federal privacy, data collection, and solicitation laws. Upon the termination or expiration of the Franchise Agreement, the franchisee must preserve and maintain the Business Management System Data for the purpose of transferring it to Bee Organized.
Bee Organized requires the franchisee to provide and permit the franchisor to maintain direct and independent access to the Business Management System and the Business Management System Data. This access allows Bee Organized to duplicate and evaluate the data. The franchisee is also obligated to upgrade, replace, and modify the Business Management System at the request of Bee Organized and according to their written instructions.
Beyond allowing access to employees for business operations, the franchisee cannot permit any third party to access, use, or duplicate the Business Management System or its data. The franchisee must keep the Business Management System and its data confidential, maintaining security precautions to ensure its confidentiality. Bee Organized is not liable to the franchisee for any damages, including lost profits or savings, related to the franchisee's use or inability to use the Business Management System, even if Bee Organized has been advised of potential damages.