Is the governing law for the Bee Organized franchise agreement subject to state law?
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. |
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, the franchise agreement is governed by Kansas law. However, this is subject to state law and as otherwise disclosed in Exhibit I to the Disclosure Document. This means that while Kansas law generally applies, there may be exceptions or modifications based on the specific state where the franchise operates. Prospective franchisees should carefully review Exhibit I to understand how state laws might affect the agreement.
This clause is fairly standard in franchise agreements. Because franchise systems operate across multiple states, a 'choice of law' provision clarifies which jurisdiction's laws will be used to interpret the agreement in case of disputes. However, it's also common for these provisions to acknowledge that certain state laws, particularly those designed to protect franchisees, may override the general choice of law.
For a prospective Bee Organized franchisee, this means understanding both Kansas law and the specific franchise laws of their own state. They should pay close attention to Exhibit I and consult with an attorney to fully grasp their rights and obligations. The interplay between Kansas law and local state laws could impact various aspects of the franchise, from termination rights to dispute resolution procedures. Franchisees should be aware of any potential conflicts or nuances arising from this provision.