Does Bee Organized have the right to approve or disapprove a transfer?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
hall convey to the transferee no rights or interests in this Agreement; and
- (5) In the event of a Transfer of this Agreement that is approved by Franchisor, Franchisee shall not be relieved of Franchisee's obligations under this Agreement whether said obligations accrued and/or arose prior to and/or after the date of Transfer.
14.C. CONDITIONS FOR APPROVAL OF TRANSFER
Provided Franchisee and each Owner and Spouse, respectively, are in substantial compliance with this Agreement and the Ancillary Agreements, and Franchisor does not elect to exercise Franchisor's right of first refusal as set forth in Article 14.F. below, Franchisor shall not unreasonably withhold its approval of a Transfer by Franchisee or an Owner. The proposed transferee (including such assignee's owner(s) and spouse(s) if the proposed transferee is a Corporate Entity) must be of good moral character, have sufficient business experience, aptitude and financial resources to own and operate a Bee Organized Business, and otherwise meet Franchisor's then applicable standards for franchisees as determined by Franchisor in its sole, but reasonable discretion. Furthermore, the proposed transferee and the proposed transferee's owners and spouses may not own or operate, or intend to own or operate, a Competitive Business. Franchisee agrees that Franchisor may condition approval of a Transfer upon Franchisee's satisfaction (either before, or contemporaneously with, the effective date of the Transfer) of the following:
- (1) Franchisee must provide written notice to Franchisor of the proposed Transfer of this Agreement at least 30 days prior to the Transfer, and Franchisee must have also satisfied the obligations set forth in Article 14.F. below;
- (2) All accrued monetary obligations of Franchisee and all other outstanding obligations 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;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized does have the right to approve or disapprove a transfer of the franchise. Specifically, Bee Organized will not unreasonably withhold approval of a transfer by the franchisee or an owner, provided that the franchisee, each owner, and each spouse are in substantial compliance with the agreement and ancillary agreements, and Bee Organized does not exercise its right of first refusal.
The proposed transferee must be of good moral character, have sufficient business experience, aptitude, and financial resources to own and operate a Bee Organized business, and otherwise meet Bee Organized's then-applicable standards for franchisees. The proposed transferee and their owners and spouses may not own or operate a competitive business.
Bee Organized may also condition approval of a transfer upon the franchisee satisfying several requirements, including providing written notice to Bee Organized at least 30 days prior to the transfer, satisfying all accrued monetary obligations, and ensuring that the transferee is bound by all terms and conditions of the agreement. Additionally, the franchisee must pay a $15,000 transfer fee to Bee Organized. These conditions ensure that the new franchisee meets Bee Organized's standards and that all outstanding obligations are met before the transfer is finalized.