Does the Bee Organized franchise agreement include a waiver of obligations clause?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
, under the heading "Conditions for Renewal," the subarticle 15.B.(8) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Article 18 of the Franchise Agreement and, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
- Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
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- There are circumstances in which an offering made by Bee Organized Enterprises, LLC would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. Bee Organized Enterprises, LLC is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, are met independently without reference to this amendment.
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this New York amendment to Bee Organized Enterprises, LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Bee Organized Enterprises, LLC | Franchisee: | |
|---|---|---|
| By: | Signature | |
| Signature | ||
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the Bee Organized Franchise Agreement:
In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Bee Organized Enterprises, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Bee Organized Business will be located within the State of North Dakota.
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- Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
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Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, the franchise agreement includes clauses that address waivers of certain obligations, particularly in relation to state franchise laws. For franchisees in New York, the agreement explicitly states that nothing within it should be interpreted as a waiver of any rights granted to the franchisee under the New York General Business Law, Sections 680-695. This provision is reinforced in amendments to specific articles of the franchise agreement, ensuring that rights and causes of action arising from these New York laws remain in effect, even during transfer or renewal of the franchise. Similar protections are in place for franchisees operating in Maryland and Minnesota, where the franchise agreement specifies that no statements or acknowledgments signed by the franchisee can waive claims under applicable state franchise laws, including those related to fraud in the inducement. These clauses are designed to supersede any other conflicting terms in the franchise agreement, providing an additional layer of security for franchisees.
These non-waiver provisions are crucial for prospective Bee Organized franchisees as they protect their rights under state franchise laws. Specifically, the clauses prevent franchisees from inadvertently relinquishing their legal rights through standard agreements or acknowledgments. This is particularly important in states like New York, Maryland, and Minnesota, which have specific franchise laws aimed at protecting franchisees from potential abuses by franchisors. The inclusion of these non-waiver clauses demonstrates Bee Organized's intent to comply with these state regulations and provide a fair franchising environment.
However, it's important to note that the effectiveness of these clauses is often tied to meeting the jurisdictional requirements of the respective state laws independently. This means that the protections may only apply if the franchisee's situation falls directly under the purview of these state laws, without relying on the amendment itself to establish jurisdiction. Therefore, prospective Bee Organized franchisees should consult with a legal professional to fully understand their rights and the specific conditions under which these non-waiver provisions apply in their particular state.