Which exhibit in the Bee Organized FDD contains the State Specific Addenda?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Disclosure Document Exhibit H – State Specific Addenda
California FDD Amendment
Amendments to the Bee Organized Franchise Disclosure Document
The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner.
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- Item 17 "Renewal, Termination, Transfer and Dispute Resolution: The Franchise Relationship," is supplemented by the addition of the following:
- A. THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
- B. The franchisor, any person or franchise broker in Item 2 of the FDD is not subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.
- C. California Business and Professions Code Sections 20000 through 20043 establish the rights of the franchisee concerning termination, transfer, or non-renewal of a franchise. If the Franchise Agreement contains a provision that is inconsistent with the law, the law will control.
- D. The Franchise Agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law. (11 U.S.C.A. Sec. 101 et seq.).
- E. The Franchise Agreement contains a covenant not to compete, which extends beyond the termination of the franchise. This provision may not be enforceable under California law.
- F. The Franchise Agreement requires binding arbitration. The arbitration will occur in Kansas. with the costs being borne by the franchisee and franchisor.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, Exhibit H contains the State Specific Addenda. This exhibit includes amendments to the FDD that are specific to certain states, such as California.
The California FDD Amendment includes a disclaimer that registration of the franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner. It also supplements Item 17, "Renewal, Termination, Transfer and Dispute Resolution: The Franchise Relationship," with additional information specific to California law.
Specifically, the California amendment notes that the California Franchise Investment Law requires a copy of all proposed agreements relating to the sale of the franchise to be delivered with the disclosure document. It also states that California law will control if the Franchise Agreement contains a provision inconsistent with the law and that certain provisions, such as those regarding termination upon bankruptcy or covenants not to compete extending beyond the franchise term, may not be enforceable under California law. The amendment also mentions that the Franchise Agreement requires binding arbitration to occur in Kansas, with costs borne by both the franchisee and franchisor.
Prospective franchisees should carefully review Exhibit H and any state-specific addenda applicable to their state to understand their rights and obligations under state law. These addenda can significantly modify the terms of the Franchise Agreement and address important legal considerations specific to each state.