Does Bee Organized have any restrictions on transferring the Franchise Agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
gations to Franchisor and/or Franchisor's affiliates under this Agreement and the Ancillary Agreements must be satisfied in a timely manner, and Franchisee must satisfy all trade, supplier, and vendor accounts and other debts, of whatever nature or kind, in a timely manner;
(3) Franchisee, each Owner, and each Spouse must not be in default or material breach of this Agreement or the Ancillary Agreements;
(4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee and their respective spouses shall personally execute the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1;
(5) All obligations of Franchisee under this Agreement and the Ancillary Agreements shall be assumed by the transferee, each individual owner of transferee, and their respective spouses in a manner satisfactory to Franchisor;
(6) Franchisee, each Owner, and each Spouse must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
(7) If the proposed Transfer includes or entails the Transfer of this Agreement, substantially all of the assets of the Franchised Business, a controlling interest in Franchisee, or is one of a series of Transfers which in the aggregate Transfers substantially all of the assets of the Franchised Business or a controlling interest in Franchisee, then, at the election of Franchisor and upon notice from Franchisor to Franchisee, the transferee may be required to execute (and/or, upon Franchisee's request, shall cause all interested parties to execute) for a term ending on the expiration date of the original Term of this Agreement, the then current standard form Franchise Agreement offered to new franchisees of Bee Organized Businesses and any other agreements as Franchisor requires.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, there are several conditions and restrictions regarding the transfer of a franchise agreement. The transferee must adhere to all the terms and conditions outlined in the original agreement. Additionally, all owners of the transferee, along with their spouses, are required to personally execute the Franchise Owner and Spouse Agreement and Guaranty.
Furthermore, the transferee must assume all obligations of the franchisee under the original agreement and any associated ancillary agreements. This assumption must be executed in a manner satisfactory to Bee Organized. The franchisee, each owner, and each spouse must also execute a General Release, releasing Bee Organized from any claims arising on or before the transfer's effective date.
In cases where the transfer involves the agreement itself, substantially all assets of the franchised business, a controlling interest in the franchisee, or a series of transfers that collectively achieve the same, Bee Organized has the option to require the transferee to execute the then-current standard franchise agreement for new franchisees. This new agreement would supersede the original, although it must maintain the same Royalty Fee, Advertising Contributions, and other financial obligations as the original agreement. A transfer fee of $15,000 is required for the transfer.