factual

During the term of the Bee Organized agreement, can a franchisee operate a Competitive Business?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee agrees that during the Term of this Agreement, Franchisee shall not engage in the following activities (the "Prohibited Activities"): (a) owning and/or having any legal or equitable interest whether, as an individual proprietor, owner, partner, member or shareholder of a Corporate Entity, or, in any similar capacity, in a Competitive Business other than, owning an interest of 3% or less in a publicly traded company that is a Competitive Business; (b) operating, managing, funding and/or performing services whether, as an employee, officer, director, manager, consultant, representative, agent, and/or creditor or, in any similar capacity, for or benefitting a Competitive Business; (c) diverting or attempting to divert any business or clients from Franchisor or, one of Franchisor's affiliates or franchisees; (d) inducing any customer or client of Franchisor, Franchisor's affiliates, franchisees of the System, or, of Franchisee, to any other person or business that is not a Bee Organized Business; and/or (e) engaging in any actions, inactions, and/or activities in violation of Articles 6.B. and/or 6.C. of this Agreement (all, individually and collectively, referred to as the "Prohibited Activities"). Franchisee agrees that if Franchisee were to engage in the Prohibited Activities that such actions would be unfair, would constitute unfair competition and would cause harm to Franchisor, the System and other Bee Organized Business franchisees. Franchisee agrees that the foregoing covenants and obligations shall also apply to Franchisee's Owners and Spouses and that Franchisee's Owners and Spouses shall each execute and deliver to Franchisor the Franchise Owner and Spouse Agreement and Guaranty in the form attached to this Agreement as Exhibit 1.

6.E. RESTRICTIVE COVENANTS: UNFAIR COMPETITION AND POST-TERMINATION NON-COMPETITION OBLIGATIONS

Source: Item 23 — RECEIPTS (FDD pages 54–218)

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, franchisees are restricted from engaging in activities considered unfair competition during the term of their agreement. Specifically, franchisees are prohibited from owning or having a legal or equitable interest in a Competitive Business. A Competitive Business is defined as any business that is the same as or similar to a Bee Organized Business, or one that offers, sells, and/or provides home organization services. However, franchisees can own an interest of 3% or less in a publicly traded company that is a Competitive Business.

In addition to ownership restrictions, Bee Organized franchisees are also barred from operating, managing, funding, or performing services for a Competitive Business, whether as an employee, officer, director, manager, consultant, representative, agent, or creditor. They cannot divert or attempt to divert any business or clients from Bee Organized or its affiliates or franchisees. Furthermore, franchisees are prohibited from inducing any customer or client of Bee Organized, its affiliates, franchisees, or the franchisee themselves to any other person or business that is not a Bee Organized Business.

These restrictions also apply to the franchisee's owners and spouses, who are required to sign a Franchise Owner and Spouse Agreement and Guaranty. Bee Organized emphasizes that engaging in these prohibited activities would be considered unfair competition and would cause harm to the franchisor, the Bee Organized system, and other franchisees. These measures are in place to protect the brand and maintain the integrity of the Bee Organized network.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.