Is it a requirement for Bee Organized franchisees to maintain insurance coverage?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
| v. Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings must be conducted in, or closest to, State court of general jurisdiction that is within or closest to Johnson County, Kansas or, if appropriate, the United States District Court nearest to our corporate headquarters at the time such action is filed. This provision is subject to applicable state law. | ||
|---|---|---|---|---|
| w. Choice of law | 18.F. | Kansas law will govern. However, this provision is subject to | ||
| state law and as otherwise disclosed in Exhibit I to this Disclosure | ||||
| Document. | ||||
| Business in compliance with all federal, state, and local laws, | ||||
| rules, and regulations, unless, such violation poses a threat to | ||||
| public health or safety; maintain insurance coverage that we | ||||
| require; comply with our standards, systems or specifications as | ||||
| we may designate or as otherwise designated in the operations | ||||
| manual; fail to operate your Bee Organized | ||||
| Business in | ||||
| conformity with our System or otherwise violate the Franchise | ||||
| Agreement, except as to events of default that are not curable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–40)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, franchisees must maintain insurance coverage that the franchisor requires. This obligation is listed under defaults that cannot be cured if violated three or more times. Specifically, failing to maintain the required insurance is considered a breach of the Franchise Agreement if the franchisee also fails to operate their Bee Organized business in compliance with the Bee Organized system or violates the Franchise Agreement.
This requirement means that prospective Bee Organized franchisees must budget for and secure the necessary insurance policies to operate their business. The specific types and amounts of coverage will be dictated by Bee Organized, and franchisees must ensure they maintain these coverages throughout the term of their agreement. Failure to do so can lead to serious consequences, including termination of the franchise agreement.
It is common practice in franchising for franchisors to mandate certain insurance coverages to protect the brand, the franchisee, and third parties. These requirements typically include general liability, auto insurance (if applicable), and worker's compensation. Prospective franchisees should carefully review the insurance requirements outlined in the FDD and discuss them with an insurance professional to ensure they can obtain and afford the necessary coverage.