What is the significance of the Bee Organized Company Owned Outlet being 'representative of the Franchised Business'?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ANALYSIS OF RESULTS OF COMPANY OWNED OUTLET
During the 2024 Calendar Year we had one Company Owned Outlet which constitutes an Operational Company Owned Outlet. Our Company Owned Outlet commenced operations in September 2015 and is based in Overland Park, Kansas. This Outlet operates in an Operating Territory that is comprised of approximately 150,388 Qualified Households, which is the equivalent of three Territories. This Outlet is representative of the Franchised Business and constitutes an Operational Company Owned Outlet for the 2024 Calendar Year.
Material financial and operational characteristics that are reasonably anticipated to differ from future operational franchise outlets include: (a) managerial skill and efficiency experienced by our Company Owned Outlet as a result of our extensively experienced management team; (b) brand recognition within the local market in which our Company Owned Outlet operates; and (c) no obligation to pay ongoing fees that a franchisee will pay to us, such as Royalty Fees.
Table 1
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 40–50)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the company-owned outlet's operational characteristics are considered representative of the franchised business. This single company-owned outlet, which began operations in September 2015 and is located in Overland Park, Kansas, functions as an operational company-owned outlet. It operates within a territory equivalent to three standard territories, encompassing approximately 150,388 qualified households.
However, the FDD also notes that there are some material differences to consider when comparing the company-owned outlet to a franchised location. These include the managerial skill and efficiency of Bee Organized's experienced management team, the established brand recognition in the company-owned outlet's local market, and the fact that the company-owned outlet does not have to pay ongoing franchise fees like royalty fees.
For a prospective franchisee, this means that while the company-owned outlet can provide some insight into potential performance, it's essential to recognize the factors that give it an inherent advantage. The company benefits from not having to pay royalty fees, has a well-established brand in its area, and has an experienced management team. A franchisee will need to account for these differences when evaluating the potential financial performance of their own Bee Organized franchise.