What does the Bee Organized supplier evaluation fee cover?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 5, "Initial fees," Item 5 is supplemented by the addition of the following:
Refund and cancellation provisions will be inapplicable to franchises operating under North Dakota Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17. If franchisor elects to cancel this Franchise Agreement, franchisor will be entitled to a reasonable fee for its evaluation of you and related preparatory work performed and expenses actually incurred.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
Based on the 2025 Bee Organized Franchise Disclosure Document, an amendment specific to North Dakota states that if Bee Organized elects to cancel the Franchise Agreement, they are entitled to a reasonable fee. This fee is to cover the evaluation of the prospective franchisee, the preparatory work performed, and the expenses actually incurred by Bee Organized during the application process.
This means that if a potential Bee Organized franchisee in North Dakota is not approved, or if Bee Organized chooses to terminate the agreement during the initial stages, the franchisee may be responsible for covering the costs associated with the time and resources Bee Organized invested in assessing their suitability. This could include background checks, administrative work, and any other direct expenses incurred.
It is important for prospective franchisees in North Dakota to understand that the refund and cancellation provisions typically associated with franchise agreements may not apply under North Dakota law. Therefore, they should be prepared to potentially bear the costs of Bee Organized's evaluation and preparatory work if the franchise agreement is cancelled by Bee Organized. This is a deviation from standard franchise practices where initial fees are often refundable under certain conditions.