Does Bee Organized waive its right of first refusal as a condition for approving a transfer?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
| j. | Assignment | 14.A. | No restriction on our right to assign. |
|---|---|---|---|
| of the contract by franchisor | |||
| k. | "Transfer" by franchisee definition | 14.B. | A transfer means and includes, whether voluntary or involuntary, conditional or unconditional, direct or indirect: (a) an assignment, sale, gift, transfer, pledge or sub-franchise; (b) the grant of a mortgage, charge, lien or security interest, including, without limitation, the grant of a collateral assignment; (c) a merger, consolidation, exchange of shares or other ownership interests, issuance of additional ownership interests or securities representing or potentially representing ownership interests, or redemption of ownership interests; and (d) a sale or exchange of voting interests or securities convertible to voting interests, or an agreement granting the right to exercise or control the exercise of the voting rights of any holder of ownership interests or to control the operations or affairs of Franchisee. |
| l. | Franchisor's approval of transfer by franchisee | 14.B. | Transfers require our prior written consent, which may be granted or withheld in our discretion. |
| m. | Conditions for franchisor's approval of transfer | 14.C. | For approval of your transfer, you must provide us with 30 days prior written notice of the proposed transfer; you and your Owners must not have defaulted in your obligations under the Franchise Agreement and all other agreements with us; you and your Owners must be in compliance with your obligations under the Franchise Agreement and all other agreements with us; the transferee must agree to be bound by all of the terms and provisions of the Franchise Agreement; the transferee's owners and their spouses must personally guarantee all of the terms and provisions of the Franchise Agreement; you and your Owners and their spouses must sign a general release in favor of us; the transfer must provide for the assignment and/or ownership of the approved location for the Franchised Business, and the transferee's continued use and occupancy of such location throughout the term of the Franchise Agreement; the assets of the Franchised Business must be transferred to the transferee; the transferee and the transferee's owners and managers, at the transferee's expense, must complete our training programs; we waive our right of first refusal; we approve of the transfer and |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–40)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized does waive its right of first refusal as a condition for approving a transfer. Specifically, to gain approval for a transfer of a Bee Organized franchise, the franchisor must waive its right of first refusal.
This condition means that if a franchisee wants to sell their Bee Organized franchise, Bee Organized agrees to not step in and purchase the franchise itself by matching the offer made by a third-party buyer. This waiver is part of the overall transfer approval process.
In addition to Bee Organized waiving its right of first refusal, there are several other conditions that must be met for a transfer to be approved. These include providing 30 days prior written notice, ensuring the franchisee is not in default, obtaining a guarantee from the transferee's owners and their spouses, and having the transferee complete the required training programs. Meeting all these conditions is necessary for a Bee Organized franchisee to successfully transfer their franchise to a new owner.