What is the exception to failing to operate the Bee Organized Business in conformity with the System?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
| v. Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings must be conducted in, or closest to, State court of general jurisdiction that is within or closest to Johnson County, Kansas or, if appropriate, the United States District Court nearest to our corporate headquarters at the time such action is filed. This provision is subject to applicable state law. | ||
|---|---|---|---|---|
| w. Choice of law | 18.F. | Kansas law will govern. However, this provision is subject to | ||
| state law and as otherwise disclosed in Exhibit I to this Disclosure | ||||
| Document. | ||||
| Business in compliance with all federal, state, and local laws, | ||||
| rules, and regulations, unless, such violation poses a threat to | ||||
| public health or safety; maintain insurance coverage that we | ||||
| require; comply with our standards, systems or specifications as | ||||
| we may designate or as otherwise designated in the operations | ||||
| manual; fail to operate your Bee Organized | ||||
| Business in | ||||
| conformity with our System or otherwise violate the Franchise | ||||
| Agreement, except as to events of default that are not curable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–40)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee must comply with Bee Organized's standards, systems, and specifications, and operate their Bee Organized business in conformity with the Bee Organized system. However, there is an exception to this requirement.
The exception is that a franchisee is not in violation of the franchise agreement if they fail to operate in conformity with the Bee Organized system or otherwise violate the Franchise Agreement, as long as the events of default are not curable. This means that if a franchisee's failure to comply with the system is due to a situation that cannot be fixed or resolved, it will not be considered a breach of the agreement.
This exception is important for prospective Bee Organized franchisees to understand because it clarifies the circumstances under which they may not be held liable for failing to meet the franchisor's standards. However, it is crucial to carefully review the franchise agreement to fully understand what constitutes a "non-curable" default, as these situations can ultimately lead to termination of the franchise agreement.