What governing law applies to the Bee Organized franchise agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
| hisee: | ||
|---|---|---|
| By: | Signature | |
| Signature | ||
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
ILLINOIS FRANCHISE AGREEMENT AMENDMENT
Amendments to the Bee Organized Franchise Agreement:
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to Bee Organized Enterprises, LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign Bee Organized Enterprises, LLC, as follows:
- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
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 is subject to different governing laws depending on the franchisee's location. For franchisees in Illinois, the Illinois Franchise Disclosure Act dictates that Illinois law governs the agreements between the parties. Similarly, for franchisees in North Dakota, North Dakota law applies to the franchise agreement. For franchisees in Hawaii, if any provision in the franchise agreement is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control. For franchisees in Minnesota, the Minnesota Statutes and Franchise Rules apply. Finally, for franchisees in New York, the New York General Business Law applies.
These stipulations mean that Bee Organized franchisees need to be aware of the specific state laws that govern their franchise agreement, as these laws can modify or supersede the standard terms of the agreement. This is particularly important in areas such as dispute resolution, termination rights, and waivers of legal rights. The state-specific addenda to the franchise agreement, as highlighted in Item 23, are crucial for understanding these variations.
Prospective Bee Organized franchisees should carefully review the addendum applicable to their state of residence or the state in which their franchise will operate. They should also consult with a legal professional to ensure they fully understand their rights and obligations under both the franchise agreement and the relevant state laws. This is a common practice in franchising, as state laws often provide additional protections to franchisees beyond what is offered in the standard franchise agreement.