What standards must a proposed transferee meet to be approved by Bee Organized?
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;
(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 Bee Organized's 2025 Franchise Disclosure Document, a proposed transferee must meet several standards to be approved. The transferee must be of good moral character and possess sufficient business experience, aptitude, and financial resources to successfully own and operate a Bee Organized business. They must also meet Bee Organized's then-current standards for franchisees, as determined by Bee Organized in its reasonable discretion. Additionally, the transferee, including their owners and spouses, cannot own, operate, or intend to own or operate a competitive business.
Bee Organized also requires that the current franchisee meet certain obligations before the transfer can be approved. This includes providing written notice of the proposed transfer at least 30 days prior to the transfer date and satisfying all outstanding financial and other obligations to Bee Organized and its affiliates. The franchisee, along with each owner and spouse, must not be in default or material breach of the Franchise Agreement or any related agreements.
The transferee must agree to be bound by all the terms and conditions of the existing Franchise Agreement. The owners and their spouses must also personally execute the Franchise Owner and Spouse Agreement and Guaranty. The transferee is responsible for upgrading the administrative office to meet Bee Organized's current standards and specifications within a timeframe specified by Bee Organized. The transferee, along with its Managing Owner, managers, and other applicable employees, must complete any required training programs. The franchisee must pay Bee Organized a $15,000 transfer fee. Bee Organized must also approve the material terms and conditions of the transfer, ensuring that the price and payment terms are not detrimental to the business's future operations. Finally, any of the transferee's employees, directors, officers, independent contractors, and agents who will have access to confidential information must execute a Confidentiality Agreement.
These conditions ensure that any new franchisee taking over an existing Bee Organized location is well-qualified, financially stable, and committed to upholding the standards and obligations of the franchise system. The transfer process also protects Bee Organized's interests by ensuring compliance with existing agreements and maintaining the quality and consistency of its brand.