Upon the death of any owner of a Bee Organized franchise, what actions are required?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
14.D. DEATH OR DISABILITY OF FRANCHISEE OR AN OWNER
- (1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Bee Organized Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Bee Organized Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Bee Organized Business. Franchisor's appointment of a manager for Franchisee's Bee Organized Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Bee Organized Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Bee Organized Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Bee Organized Business. Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time.
- (2) If Franchisee is a Corporate Entity, upon the death or permanent disability of Franchisee's Managing Owner, the remaining Owners within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability, must appoint a new Managing Owner that is approved by Franchisor. The appointed Managing Owner must attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Bee Organized Business is not being managed by a Franchisor approved Managing Owner (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Bee Organized Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Managing Owner is able to assume the management and operation of Franchisee's Bee Organized Business. Franchisor's appointment of a manager for Franchisee's Bee Organized Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Bee Organized Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Bee Organized Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Bee Organized Business. Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time. Notwithstanding the foregoing, if Franchisee is a Corporate Entity and the Managing Owner is the only Owner of Franchisee, then Article 14.D.(1) shall apply as if the Managing Owner were the sole individual Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the required actions following the death or permanent disability of a franchisee or owner depend on the franchisee's business structure. If the franchisee is an individual, their representative must appoint a manager meeting the standards of an Operating Manager within 30 days. This manager must then complete the Bee Organized Training Program within 60 days of appointment. If a manager is not appointed within 30 days, Bee Organized can appoint one at the franchisee's expense.
If the franchisee is a corporate entity and the Managing Owner dies or becomes permanently disabled, the remaining owners have 30 days to appoint a new Managing Owner approved by Bee Organized. This new Managing Owner must also complete the Training Program within 60 days of their appointment. Similar to individual franchisees, if a Managing Owner is not appointed within 30 days, Bee Organized can appoint a manager at the franchisee's expense.
It's important to note that Bee Organized's appointment of a manager does not relieve the franchisee of their obligations under the Franchise Agreement, nor does it waive Bee Organized's right to terminate the agreement. Bee Organized is also not liable for any debts, losses, or expenses incurred during the operations of the franchise, even if managed by their appointed manager, and can charge a reasonable fee for these management services. If the Managing Owner is the only owner of a Corporate Entity, the rules for individual franchisees apply.