Under what conditions can a Bee Organized franchisee delegate management functions?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
7.I. MANAGEMENT OF THE FRANCHISED BUSINESS
- (1) Franchisee agrees that, at all times, that the development and operation of the Franchised Business shall be managed, operated, and maintained under the active, continuing management, substantial personal involvement and hands-on supervision, of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completes Franchisor's Training Program, and otherwise meets the criteria and conditions for qualification as an Operating Manager as designated and determined by Franchisor from time to time. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager shall also sign and agree to be bound by the terms of the Franchise Owner and Spouse Agreement and Guaranty.
- (2) Franchisee must, at all times, faithfully, honestly and diligently perform its obligations hereunder, and continuously exert its best efforts to promote and enhance the business of the Franchised Business and the goodwill of the Licensed Marks and the System.
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. Franchisor's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Franchisor's right to terminate the Franchise pursuant to Article 16. Franchisor is not liable for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the franchisee must actively manage their business. However, the franchisee can delegate management functions to an authorized Operating Manager if the Operating Manager satisfactorily completes Bee Organized's Training Program and meets the criteria and conditions for qualification as an Operating Manager, as determined by Bee Organized.
If the Operating Manager is a family member or an Owner, they must also sign and agree to be bound by the Franchise Owner and Spouse Agreement and Guaranty. If the Franchised Business is not being managed by a Managing Owner or Operating Manager who has satisfactorily completed the Training Program, Bee Organized is authorized, but not required, to immediately appoint a manager to maintain the operations of the Franchised Business on behalf of the franchisee.
Bee Organized's appointment of a manager does not relieve the franchisee of their obligations or waive Bee Organized's right to terminate the franchise agreement. Bee Organized is not liable for any debts, losses, costs, or expenses incurred during the period when the business is managed by their appointed manager.