What claims brought by Bee Organized are exceptions to the limitation of claims?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
EXCEPT FOR CLAIMS BROUGHT BY FRANCHISOR WITH REGARD TO FRANCHISEE'S OBLIGATIONS TO MAKE PAYMENTS TO FRANCHISOR PURSUANT TO THIS AGREEMENT, FRANCHISOR'S ENFORCEMENT OF THE RESTRICTIVE COVENANTS SET FORTH IN ARTICLE 6 OF THIS AGREEMENT, AND FRANCHISEE'S OBLIGATION TO INDEMNIFY FRANCHISOR IN ACCORDANCE WITH THIS AGREEMENT, ANY AND ALL CLAIMS AND/OR CAUSES OF ACTION ARISING OUT OF, OR RELATING TO, THIS AGREEMENT, OR THE RELATIONSHIP BETWEEN FRANCHISEE AND FRANCHISOR RESULTING FROM THIS AGREEMENT, SHALL BE BARRED UNLESS SUCH CLAIM AND/OR CAUSE OF ACTION IS COMMENCED WITHIN TWO YEARS FROM THE DATE ON WHICH THE ACT OR EVENT GIVING RISE TO THE CLAIM OCCURRED OR ONE YEAR FROM THE DATE ON WHICH FRANCHISEE OR FRANCHISOR KNEW, OR SHOULD HAVE KNOWN, IN THE EXERCISE OF REASONABLE DILIGENCE, OF THE FACTS GIVING RISE TO SUCH CLAIM AND/OR CAUSE OF ACTION, WHICHEVER OCCURS FIRST IN TIME.
**18.J. WAIVER OF PUNITIVE DAMAGES AND LIMITATION OF DAMAGES
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, there are specific exceptions to the standard limitations of claims, particularly concerning franchisee obligations and legal compliance. Generally, the agreement stipulates that any claims arising from the franchise agreement or the relationship between the franchisee and Bee Organized must be initiated within a specific timeframe. However, this limitation does not apply to certain claims brought by Bee Organized against the franchisee.
Specifically, Bee Organized retains the right to pursue claims related to the franchisee's obligation to make payments to Bee Organized as outlined in the agreement. This ensures that Bee Organized can recover any outstanding fees, royalties, or other financial obligations owed by the franchisee. Additionally, the limitation of claims does not restrict Bee Organized's ability to enforce the restrictive covenants detailed in Article 6 of the franchise agreement, which typically cover non-competition and confidentiality clauses. This allows Bee Organized to protect its business interests and proprietary information.
Furthermore, the limitation of claims does not apply to the franchisee's obligation to indemnify Bee Organized as per the agreement. Indemnification clauses require the franchisee to compensate Bee Organized for any losses, damages, or liabilities arising from the franchisee's operations or breach of contract. These exceptions ensure that Bee Organized can safeguard its financial interests, enforce contractual obligations, and seek compensation for any damages caused by the franchisee's actions, regardless of the general limitations on claims outlined in the agreement. In Maryland, a franchisee may bring a lawsuit for claims arising under the Maryland Franchise Registration and Disclosure Law.