Can Bee Organized withhold approval of a supplier at its discretion?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval. When evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the supplier's quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the supplier's approval, in our sole determination, will allow us to advance the overall interests of the System.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–22)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Bee Organized retains the discretion to withhold approval of a supplier. If a franchisee wants to purchase or lease a source-restricted item from a supplier not already approved, they must submit a written request with any additional information Bee Organized requests. Bee Organized may charge a supplier review and testing fee and request samples and documentation for evaluation, and may also require an inspection of the supplier's facilities.
Bee Organized will then notify the franchisee of approval or disapproval within a reasonable time, not exceeding 60 days, after receiving the request and all required information. However, Bee Organized explicitly reserves the right to withhold approval at its discretion.
When evaluating a supplier, Bee Organized considers factors such as the supplier's ability to meet their standards, specifications, and production requirements, their quality control measures, whether Bee Organized or its affiliates are exclusive suppliers of the item, and whether the supplier's approval will advance the overall interests of the Bee Organized system. This means that even if a supplier meets the basic requirements, Bee Organized can still deny approval based on its assessment of the system's best interests.