Does Bee Organized have reserved rights within a franchisee's operating territory?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates reserve to ourselves the exclusive right on any and all terms and conditions that we deem advisable and, without any compensation or consideration to you (Franchise Agreement, Article 2.D.), to engage in the following activities (our "Reserved Rights"): (a) operate and grant to others the right to develop and operate Bee Organized Businesses using the System and Licensed Marks outside your Operating Territory, as we deem appropriate and irrespective of the proximity to your Operating Territory; (b) acquire, be acquired, develop, merge with or otherwise affiliate with one or more businesses of any kind, including businesses that offer and sell products and services that are the same as or similar to your Bee Organized Business, and after such acquisition, development, merger or affiliation, to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses of any kind, even if such businesses offer and sell products and services that are the same as or similar to the Franchised Business (but not utilizing the Licensed Marks) within your Operating Territory; (c) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the outlets, stores, big box retailers, internet, e-commerce, catalog sales, telemarketing, or other direct marketing sales within or outside your Operating
Territory; (d) use the Licensed Marks and System to offer, sell, and provide the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business on behalf of customers of local, regional, and/or national corporate accounts such as big box home improvement retailers and wholesale outlets (referred to as "Corporate Accounts") within or outside your Operating Territory; (e) use the Licensed Marks and System to offer, sell, and provide and grant to others the right to offer, sell, and provide the Approved Services and Products to clients within your Operating Territory if the transaction originated at a location outside of your Operating Territory and/or within the operating territory of another system franchisee; (f) use the Licensed Marks and System and to license others to use the Licensed Marks and System, to engage in all other activities not expressly prohibited by the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized reserves significant rights within a franchisee's operating territory. While franchisees are granted an operating territory, it is not exclusive. Bee Organized retains the right to compete through various channels.
Bee Organized's reserved rights include the ability to engage in activities such as acquiring or merging with other businesses, even those offering similar services, and operating them within the franchisee's territory as long as they do not use Bee Organized's licensed marks. Bee Organized can also use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business in alternative channels of distribution including the outlets, stores, big box retailers, internet, e-commerce, catalog sales, telemarketing, or other direct marketing sales within or outside your Operating Territory. They can also service corporate accounts within the territory, potentially without compensating the franchisee if the franchisee declines to participate in Bee Organized's Corporate Accounts Program.
These reserved rights allow Bee Organized to pursue various business opportunities and strategies, which could directly compete with a franchisee's business. A franchisee may find themselves competing with Bee Organized's online sales, corporate accounts, or even other businesses acquired by Bee Organized that offer similar services. This lack of exclusivity and the broad scope of Bee Organized's reserved rights represent a significant risk for franchisees, as Bee Organized can operate in ways that may reduce a franchisee's potential customer base and revenue.
Furthermore, Bee Organized can offer, sell, and provide and grant to others the right to offer, sell, and provide the Approved Services and Products to clients within your Operating Territory if the transaction originated at a location outside of your Operating Territory and/or within the operating territory of another system franchisee. These extensive reserved rights held by Bee Organized are important for prospective franchisees to consider, as they significantly impact the exclusivity and potential profitability of their territory.