What is the relationship between the 'Operating Territory' and the 'Bee Organized Business'?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
erritory. In reliance on the representations made by Franchisee and/or Franchisee's Owners in any submitted application and during the application process and subject to the terms and conditions of this Agreement, Franchisee's request has been approved by Franchisor, subject to the following terms and conditions:
- (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the non-exclusive license, right and obligation to develop and operate a Bee Organized Business within the operating territory designated and set forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;
- (4) Franchisee may only operate the Franchised Business within Franchisee's Operating Territory and, without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products within Franchisee's Operating Territory from Franchisor designated and authorized Vehicles, the System standards designated by Franchisor, and in accordance with the requirements designated by Franchisor in the Operations Manual;
- (5) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights Closed Markets, and Multi-Service Events Designated and approved by Franchisor and subject to Franchisor's System standards and requirements which Franchisor may amend, modify, and/or suspend in Franchisor's Reasonable Business Judgment, provided that, at all times, Franchisee is and remains in
compliance with the terms of this Agreement, during the Term of this Agreement, Franchisor will not and Franchisor's affiliates will not operate, or grant a franchisee the right to operate a Bee Organized Business using the Licensed Marks and System within Franchisee's Operating Territory, provided that an Operating Territory has been designated and approved by Franchisor in accordance with the terms of this Agreement; and
(6) The foregoing rights granted in this Article 2.A.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee's Bee Organized Business must operate within a designated 'Operating Territory.' The 'Franchisee’s Bee Organized Business' is defined as the business the franchisee operates within their assigned 'Operating Territory,' adhering to the franchise agreement's terms and conditions. This means the franchisee's rights and obligations are tied to this specific geographic area. The franchisor grants the franchisee a non-exclusive license to operate a Bee Organized Business within the 'Operating Territory' outlined in Schedule 1 of the Franchise Agreement. If Schedule 1 doesn't specify the territory, Bee Organized will determine it based on their reasonable business judgment.
The 'Operating Territory' consists of a primary territory, and can include additional territories if both Bee Organized and the franchisee agree to expand the area at the time of signing the agreement. These additional territories are quantified in Schedule 2, which is used to calculate the initial franchise fee and other obligations. The franchisee's administrative office must be located within the 'Operating Territory' and requires approval from Bee Organized. Franchisees are restricted to offering and selling approved services and products only within their 'Operating Territory,' utilizing designated vehicles and adhering to System standards outlined in the Operations Manual.
Bee Organized and its affiliates will not operate or grant another franchise to operate a Bee Organized Business within the franchisee's 'Operating Territory' during the agreement's term, provided an 'Operating Territory' has been designated and approved. However, this exclusivity is subject to certain exceptions, including Bee Organized's reserved rights, closed markets, and multi-service events designated and approved by Bee Organized. Franchisees may provide services to clients in an open area surrounding their 'Operating Territory' if they do not directly solicit clients outside their territory, do not violate Article 9 of the agreement, and unless Bee Organized directs otherwise. Once an open area becomes an assigned area, the franchisee must cease communication with clients in that area and turn over all related information to Bee Organized or another franchisee.