Are the rights granted to the franchisee by Bee Organized in Article 2.A subject to any conditions?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee has requested that Franchisor grant to Franchisee the non-exclusive license and right to develop, own and operate a Bee Organized Business within a specified territory. In reliance on the representations made by Franchisee and/or Franchisee's Owners in any submitted application and during the application process and subject to the terms and conditions of this Agreement, Franchisee's request has been approved by Franchisor, subject to the following terms and conditions:
- (1) During the Term of this Agreement and subject to the rights of Franchisor including, but not limited to, the Reserved Rights, Franchisor grants to Franchisee and Franchisee accepts, the non-exclusive license, right and obligation to develop and operate a Bee Organized Business within the operating territory designated and set forth in Schedule 1 of this Agreement (the "Operating Territory"). If Schedule 1 does not specifically identify and designate an Operating Territory, and/or if Schedule 1 is not signed by Franchisor, the Operating Territory shall be determined by Franchisor in Franchisor's Reasonable Business Judgment;
- (2) The Operating Territory shall be comprised of a Territory and if, at the time of signing this Agreement, Franchisor and Franchisee agree to supplement the size of Franchisee's Operating Territory by adding an Additional Territory or Additional Territories, the Additional Territory or Additional Territories shall be included within the Operating Territory identified in Schedule 1 and shall be quantified in Schedule 2 for purposes of calculating the Initial Franchise Fee and other obligations under this Agreement;
- (3) Franchisee's Administrative Office must be located within the Operating Territory and be approved by Franchisor;
- (4) Franchisee may only operate the Franchised Business within Franchisee's Operating Territory and, without limitation to the foregoing, Franchisee may only offer and sell the Approved Services and Products within Franchisee's Operating Territory from Franchisor designated and authorized Vehicles, the System standards designated by Franchisor, and in accordance with the requirements designated by Franchisor in the Operations Manual;
- (5) Except as otherwise provided in this Agreement including, but not limited to, the Reserved Rights Closed Markets, and Multi-Service Events Designated and approved by Franchisor and subject to Franchisor's System standards and requirements which Franchisor may amend, modify, and/or suspend in Franchisor's Reasonable Business Judgment, provided that, at all times, Franchisee is and remains in
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the grant of franchise in Article 2.A is subject to specific terms and conditions. Bee Organized grants the franchisee a non-exclusive license to develop, own, and operate a Bee Organized business within a specified territory. This grant is made in reliance on the representations made by the franchisee during the application process.
The grant of franchise is explicitly subject to the terms and conditions outlined in the Franchise Agreement. This means that the franchisee's rights are not absolute and are contingent upon compliance with the agreement. The franchisee's operating territory is designated in Schedule 1 of the agreement, and if this schedule is missing or unsigned, Bee Organized will determine the territory based on their reasonable business judgment.
Furthermore, the franchisee's administrative office must be located within the operating territory and approved by Bee Organized. The franchisee can only operate the franchised business, offering and selling approved services and products, within their designated operating territory using approved vehicles and system standards. Bee Organized retains certain reserved rights and can designate closed markets and multi-service events, which may affect the franchisee's operational scope. However, as long as the franchisee remains in compliance with the agreement, Bee Organized and its affiliates will not operate or grant another franchise the right to operate a Bee Organized business within the franchisee's designated operating territory.