Under what conditions can a Bee Organized franchisee provide services in an open area?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of clients or potential clients outside of Franchisee's Operating Territory or, within the Operating Territory of another Bee Organized Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a client in an Open Area surrounding Franchisee's Operating Territory. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
- (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with clients previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Bee Organized Business, all information and records related to the Approved Services and Products provided within the Open Area.
Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Territory and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee may provide approved services and products to clients in an open area surrounding their operating territory if they meet certain conditions. These conditions include not engaging in direct solicitation of clients or potential clients outside of their operating territory or within the operating territory of another Bee Organized business. Additionally, the franchisee must not violate any restrictions outlined in Article 9 of the franchise agreement.
Bee Organized also retains the right to direct a franchisee to discontinue providing services in an open area at any time, for any reason, with written notice. This means that even if a franchisee meets the initial conditions, Bee Organized can still restrict their ability to serve clients in an open area.
If an open area becomes an assigned area, the franchisee must stop communicating with clients previously serviced in that area. Furthermore, they must turn over all information and records related to the approved services and products provided within the open area to Bee Organized, or another Bee Organized business designated by Bee Organized. This ensures a smooth transition of client management when an open area is assigned to a new franchisee or managed directly by Bee Organized. These rules do not expand the non-exclusive franchise rights granted to the franchisee or the franchisee's operating territory.