2B Organized Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$12,950 - $18,050
Franchise Fee
$8,000
Total US Locations
15
Business Summary
2B Organized Franchised Businesses provide professional organizing and personal assistance related services for both residential and commercial clients. This service-based business helps clients streamline clutter and get organized.
Corporate History
2B Organized Franchise System, Inc. was organized as a Missouri corporation on November 22, 2011, and began offering franchises on February 28, 2012. The company does not operate businesses of the type being franchised directly. An affiliate, 2B Organized, LLC (2B), has operated a professional organizing business in Springfield, Missouri, since 1998, which was previously owned and operated by Betsy Miller under the name "Get Organized" since 1997. 2B Organized has not offered franchises in any other lines of business.
Financial Overview
Investment Range
$12,950 - $18,050
Franchise Fee (Low)
$8,000
Franchise Fee (High)
$8,000
Royalty %
13%
Working Capital
$750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The franchisor's financial statements, as detailed in Item 21, raise questions about 2B Organized's financial ability to provide services and support to its franchisees. This is highlighted as a special risk to consider about this franchise. Specifically, the audited financials for 2B Organized include a Going Concern qualification.
Financing Details
2B Organized does not offer any direct or indirect financing to its franchisees. This includes not guaranteeing any loans, notes, leases, or other obligations. Franchisees are responsible for obtaining their own financing for the investment.
Performance Metrics
Total US Locations
15
Franchised Units
15
Corporate Units
0
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
2B Organized has no litigation to report in Item 3 of its Franchise Disclosure Document. This means the franchisor, its predecessors, parents, or affiliates, and the executives listed in Item 2 have not been involved in any material legal proceedings that require disclosure.
Bankruptcy History
2B Organized has no bankruptcy information to disclose in Item 4 of its Franchise Disclosure Document. Neither the franchisor nor its executives have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew the franchise, 2B Organized franchisees must give written notice between seven and twelve months before the initial term ends. They must be in good standing, not be in breach of any agreements with 2B Organized or its affiliates, and satisfy all monetary obligations. Additionally, franchisees must pay a $2,500 renewal fee, execute a general release, and sign the then-current Franchise Agreement, which may have materially different terms and conditions. They also need to comply with current qualification and training requirements. The Exclusive Territory will remain the same upon renewal.
Training & Support Program
Franchisor Assistance
Before opening, 2B Organized grants franchisees the right to operate a 2B ORGANIZED Franchised Business within an exclusive territory, loans them the confidential Operations Manual and training materials, provides an initial training program, and a list of approved products, supplies, and suppliers. Franchisees can operate from their residence and are responsible for site selection within 60 days of signing the agreement. After opening, 2B Organized provides ongoing assistance and supervision, specifications for supplies, guidance with marketing and sales promotion programs, administrative and general operating procedures, and additional training as deemed necessary. 2B Organized also establishes and revises policies and standards and provides marketing and research assistance, including sales research and networking within the exclusive territory. While there is currently no advertising fund, 2B Organized reserves the right to implement one with a $100 monthly contribution from franchisees.
Initial Training Hours
32
Training Location
Sacramento, CA
Ongoing Support
After a 2B Organized franchisee opens their business, 2B Organized provides ongoing assistance and supervision as deemed appropriate and reasonable. This includes providing specifications for supplies, guidance with marketing assistance and sales promotion programs, and administrative, marketing, sales, and general operating procedures. 2B Organized may also offer additional training and support at its sole discretion, and will establish, amend, or revise policies, procedures, standards, and specifications for the business operation. The Operations Manual is a fluid document that will be updated. 2B Organized offers marketing and research assistance, which may include sales research and networking. There is currently no advertising fund, but 2B Organized may implement a Marketing Fund with a $100 monthly contribution upon 60 days' notice, to be used for national, regional, or local advertising, promotional materials, and brand awareness activities. Franchisees must submit monthly accounting of local advertising expenditures and obtain approval for all advertising materials not prepared or previously approved by 2B Organized.
Franchise Requirements
Ideal Candidate Profile
2B Organized recommends and may require that franchisees personally supervise or be directly involved in the day-to-day, full-time supervision of the Franchised Business. If the franchisee is an entity, a managing partner, representative, or managing member approved by 2B Organized who has completed the initial training program must supervise the business. Alternatively, a manager selected by the franchisee and approved by 2B Organized, who has successfully completed the initial training program, may be responsible for full-time day-to-day supervision. Franchisees and their spouses must also sign a personal guaranty, making them individually liable for financial obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
2B Organized grants franchisees an exclusive territory, which is a designated geographic area. The size of this area can vary but is generally a specific geographic area within a metropolitan statistical area in major cities, or it may be limited to the municipal boundaries of a city. 2B Organized determines the size and boundaries based on factors like population density, neighborhood character, location and number of competing businesses, and other relevant criteria. The territory may be defined by one or more five-digit zip codes, county or city boundaries, or fixed geographic boundaries such as rivers, streets, or highways. Demographic statistics from the U.S. Census Bureau are generally used to determine these exclusive territories.
Staffing Notes
2B Organized franchisees are solely responsible for hiring, supervising, managing, compensating, and training all their employees. They have sole control over working hours, benefits, wages, and other employment policies. Franchisees are not permitted to place employees or provide services in another franchisee's Exclusive Territory without 2B Organized's written approval. The Operations Manual contains additional requirements regarding the proper hiring and training of employees. The person responsible for day-to-day supervision must be full-time and not engage in other conflicting business activities.