Under what circumstances related to ancillary agreements can a Bee Organized franchisee be in default?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ivulges, provides access to, communicates, and/or permits the communication of Confidential Information to any third party not otherwise authorized by Franchisor;
- (k) Franchisee engages in any activity that injures, harms, damages, or otherwise has a material
adverse effect on Franchisor, the System, the Licensed Marks, Bee Organized Businesses, the Franchised Business, and/or the reputation of the Bee Organized brand;
- (l) Franchisee, an Owner, and/or a Spouse, as applicable and whether individually or jointly, breaches or is in default of an Ancillary Agreement, and, if the applicable agreement provides for the opportunity to cure, fails to timely cure the breach or default of the Ancillary Agreement, including, without limitation, the Fr
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee can be in default if they, an owner, or a spouse breaches or defaults on an Ancillary Agreement. This includes agreements like the Franchise Owner and Spouse Agreement and Guaranty. If the Ancillary Agreement provides an opportunity to cure the breach, the franchisee must do so in a timely manner to avoid being in default.
Ancillary Agreements are defined to include the Franchise Owner and Spouse Agreement and Guaranty, as well as the Assignment of Telephone Numbers and Digital Media Accounts. These agreements are separate from the main Franchise Agreement but are related to the operation of the Bee Organized franchise.
This means that a Bee Organized franchisee needs to carefully review and comply with all terms of not only the Franchise Agreement but also any Ancillary Agreements. Failure to meet the obligations in these ancillary documents can lead to a default, potentially resulting in termination of the franchise. Franchisees should pay close attention to any cure periods provided in these agreements and ensure they take prompt action to remedy any breaches.