Where will arbitration proceedings be conducted for disputes involving a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
reach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement; and/or (b) claims by either Franchisor or Franchisee under this Agreement that relates to either Franchisor's or Franchisee's failure to pay fees or other monetary obligations due under this Agreement.
- (2) Arbitration Subject to the prerequisite requirements of non-binding mediation as set forth in Sub-Article 18.G.(1), and, except at Franchisor's election, as to any claims or disputes related to or concerning a breach of this Agreement by Franchisee that, under the terms of this Agreement, may entitle Franchisor to the award of injunctive relief including, but not limited to, Franchisee's violation or purported violation of Article 6 of this Agreement, Franchisor and Franchisee agree that all disputes, controversies, and claims, arising from and/or related to this Agreement, the relationship between Franchisor and Franchisee, the System, and/or the validity of this Agreement and/or the Ancillary Agreements, shall be submitted, on demand of either Franchisor or Franchisee, to AAA for binding arbitration. Arbitration shall be conducted by one arbitrator in accordance with AAA's then current rules for commercial disputes, except as may be otherwise required in this Article 18.G. 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. In connection with binding arbitration, Franchisor and Franchisee further agree that:
- (a) All matters relating to arbitration, will be governed by the United States Federal Arbitration Act, except as expressly or otherwise set forth in this Agreement;
- (b) The arbitration hearing shall be conducted within 180 days of the demand for arbitration;
- (c) The arbitrator shall render written findings of fact and conclusions of law;
- (d) Except as may be otherwise required and/or prohibited by this Agreement including, but not limited to Articles 18.I., 18.J., 18.N., 18.O., 18.R., 18.T., and 18.X. of this Agreement, the arbitrator has the right to award or include in his or her award any relief that he or she determines to be proper, including monetary damages, interest on unpaid sums, specific performance, injunctive relief,
attorneys' fees, and costs and expenses as allowable under this Agreement. Notwithstanding the foregoing, under no circumstance shall the Arbitrator be authorized to award or declare the Licensed Marks to be descriptive or invalid;
- (e) They shall each be bound to the limitation's periods set forth in Article 18.I. of this Agreement and that, in any arbitration proceeding, Franchisor and Franchisee must each timely submit, within the same arbitration proceeding, any claim that would constitute a compulsory counterclaim as such claims are defined and set forth under Rule 13 of the United States Federal Rules of Civil Procedure. Any claim that is not submitted or filed as required shall be forever barred;
- (f) Judgment upon the arbitrator's award may be entered in any court of competent jurisdiction;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, arbitration proceedings will generally be conducted in Johnson County, Kansas. Specifically, the FDD states that arbitration will occur in Johnson County, Kansas, or if suitable AAA (American Arbitration Association) facilities are unavailable there, at a suitable AAA location selected by the arbitrator that is located closest to Johnson County, Kansas. This applies to all disputes, controversies, and claims arising from or related to the Franchise Agreement, the relationship between Bee Organized and the franchisee, the System, and/or the validity of the Agreement.
However, there are exceptions to this general rule. For franchisees who purchase their Bee Organized franchise in Washington, the arbitration site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Furthermore, the Illinois Franchise Agreement Amendment notes that while Illinois law governs the agreements, a franchise agreement may provide for arbitration in a venue outside Illinois, despite the fact that any provision designating jurisdiction or venue outside the State of Illinois is void under Illinois law. Similarly, the Maryland Franchise Agreement Amendment indicates a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the agreement to resolve disputes through arbitration.
Therefore, prospective Bee Organized franchisees should be aware that while the standard agreement specifies arbitration in Kansas, these terms may be superseded or modified by state-specific laws or addenda, potentially requiring arbitration or allowing litigation in their state of residence or where the franchise is operated.