Does Bee Organized have the right to profit from payments received from designated suppliers?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisor reserves the right to designate, from time to time, a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and Vehicles and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees of the System and that Franchisor may use all amounts so received without restriction and for any purpose, including Franchisor's profit; and
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized has the right to receive payments from designated suppliers and to profit from those payments. Bee Organized also has the right to designate a single supplier or distributor for services, products, equipment, supplies, or materials, including System Supplies and Vehicles, and require franchisees to exclusively use that supplier. This designated supplier can be Bee Organized itself or one of its affiliates.
Bee Organized states that it and its affiliates may receive payments from suppliers or distributors based on the dealings those suppliers or distributors have with Bee Organized franchisees. Bee Organized retains the right to use these payments without any restrictions and for any purpose, including for its own profit.
This arrangement is common in franchising, where franchisors negotiate deals with suppliers and receive rebates or commissions. For a prospective Bee Organized franchisee, this means that the cost of goods or services from mandatory suppliers could be higher than what might be available on the open market, with the difference contributing to Bee Organized's revenue. Franchisees should consider this when evaluating the overall cost and profitability of the franchise.