Where are arbitration proceedings conducted for Bee Organized disputes?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
All arbitration proceedings shall be conducted in Johnson County, Kansas, or, if suitable AAA facilities are not available in Johnson County, Kansas, then at a suitable AAA location selected by the arbitrator that is located closest to Johnson County, Kansas.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, arbitration proceedings are generally conducted in Johnson County, Kansas. Specifically, the FDD states that all arbitration proceedings will take place in Johnson County, Kansas. However, if suitable American Arbitration Association (AAA) facilities are not available in Johnson County, Kansas, the proceedings will be held at a suitable AAA location selected by the arbitrator that is located closest to Johnson County, Kansas.
This means that a Bee Organized franchisee could be required to travel to Johnson County, Kansas for arbitration, or to a location very near Johnson County, Kansas. This could involve significant travel expenses and time, depending on where the franchisee's business is located.
It is important to note that the Illinois Franchise Agreement Amendment states that while a Franchise Agreement may provide for arbitration in a venue outside Illinois, Illinois law governs the agreements between the parties to the franchise. The Maryland Franchise Agreement Amendment states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the arbitration clause. Prospective franchisees should consult with a legal professional to understand the implications of these clauses and amendments in their specific state.