How can the Bee Organized agreement be modified?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
ILLINOIS FRANCHISE AGREEMENT AMENDMENT
Amendments to the Bee Organized Franchise Agreement:
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to Bee Organized Enterprises, LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign Bee Organized Enterprises, LLC, as follows:
- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void
- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.G. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the franchise agreement can be modified through addenda that address specific state laws. For example, the document includes an "ILLINOIS FRANCHISE AGREEMENT AMENDMENT" that modifies sections of the agreement to comply with the Illinois Franchise Disclosure Act. Similarly, there is a "NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT" that alters certain provisions to align with North Dakota's Franchise Investment Law.
In the case of Illinois, the amendment specifically addresses the governing law and jurisdiction, ensuring that Illinois law governs the agreements and that certain provisions designating jurisdiction or venue outside of Illinois are void, although arbitration outside Illinois is permitted. The amendment also references the franchisee's rights upon termination and non-renewal as set forth in the Illinois Franchise Disclosure Act, and states that any attempt to waive compliance with Illinois law is void.
For North Dakota, the amendments cover a range of issues, including general releases upon renewal, consent to termination or liquidated damages, covenants not to compete, consent to jurisdiction of courts outside North Dakota, the application of North Dakota law, and waivers of trial by jury or exemplary and punitive damages. These amendments ensure that the Bee Organized franchise agreement complies with specific legal requirements in Illinois and North Dakota, providing franchisees in those states with additional protections and rights as mandated by state law.
This approach to modifications suggests that Bee Organized is willing to adapt its standard franchise agreement to comply with state-specific franchise laws, which is a common practice in franchising to ensure legal compliance and protect the interests of both the franchisor and the franchisee. Prospective franchisees should carefully review any state-specific addenda to understand how the standard agreement is modified in their state.