What is the Transfer Fee used for when transferring a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisor set forth in this Agreement;
(10) At the transferee's expense, the transferee, and the transferee's Managing Owner, managers and/or any other applicable employees of transferee's Bee Organized Business must complete any training programs then in effect for franchisees of Bee Organized Businesses upon terms and conditions set forth in this Agreement or as Franchisor otherwise reasonably requires;
(11) Franchisee must pay a fixed sum of $15,000 to Franchisor (the "Transfer Fee");
(12) Franchisor's approval of the material terms and conditions of the Transfer, and Franchisor determines in Franchisor's Reasonable Business Judgment that the price and terms of payment are not so burdensome as to be detrimental to the future operations of the Franchised Business by the transferee;
(13) Transferee's employees, directors, officers, independent contractors, and agents who will have access to Confidential Information shall execute the Confidentiality Agreement attached hereto as Exhibit 2;
(14) Franchisee entering into an agreement with Franchisor agreeing to subordinate any obligations of transferee to make installment payments of the purchase price to Franchisee to the transferee's obligations to Franchisor, including, without limitation, transferee's obligations with respect to Royalty Fees and Advertising Contributions;
(15) Franchisee and transferee acknowledge and agree that Franchisor's approval of the Transfer indicates only that the transferee meets, or Franchisor waived, the criteria established by Franchisor for franchisees as of the time of such transfer, and Franchisor's approval thereof does not constitute a warranty or guaranty by Franchisor, express or implied, of the suitability of the terms of sale, successful operation, or profitability of the Franchised Business;
(16) Franchisee and transferee acknowledge and agree that Franchisor's approval of the Transfer at issue does not constitute Franchisor's approval of future or other Transfers or the waiver of the requirement that Franchisor must approve such future or other Transfers in accordance with this Agreement;
(17) The Transfer must be made in compliance with all applicable laws;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee must pay a $15,000 Transfer Fee to Bee Organized when transferring their franchise. The FDD states that this fee is a fixed sum.
In addition to the transfer fee, the transferee must also meet several other conditions. The transferee needs to improve or upgrade the Administrative Office to meet Bee Organized's current standards, and they must complete any training programs that are in effect for franchisees. The transferee must also adhere to the terms and conditions of the Franchise Agreement, with each owner of the transferee and their spouses required to sign the Franchise Owner and Spouse Agreement and Guaranty.
Furthermore, the franchisee, each owner, and each spouse must sign a General Release, releasing Bee Organized from any claims before the transfer date. Bee Organized also needs to approve the transfer's terms, ensuring they are not too burdensome for the new franchisee's operations. The transferee's employees who access confidential information must also sign a Confidentiality Agreement.
These conditions and the transfer fee ensure that the new franchisee is well-prepared and compliant with Bee Organized's standards, and that Bee Organized is protected from potential liabilities during and after the transfer process.