Is the governing law for Bee Organized 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 subject to state law. While Kansas law generally governs the agreement, this is explicitly subject to state law. This means that certain provisions of the franchise agreement may be superseded or modified by the laws of the state in which the franchisee operates their Bee Organized business.
This is a fairly common practice in franchising, as state laws often regulate specific aspects of the franchisor-franchisee relationship, such as franchise sales, registration, and termination. The FDD also mentions that further details regarding the governing law and its exceptions are disclosed in Exhibit I of the document.
For a prospective Bee Organized franchisee, this means it's crucial to review Exhibit I carefully and understand how state laws might affect the franchise agreement in their specific location. Consulting with a franchise attorney is advisable to fully grasp the implications of this provision and ensure compliance with all applicable state laws.