factual

Can the guarantor of a Bee Organized franchise use the statute of limitations as a defense?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.

Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."

Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

Source: Item 23 — RECEIPTS (FDD pages 54–218)

What This Means (2025 FDD)

According to the 2025 Bee Organized Franchise Disclosure Document, whether a guarantor can use the statute of limitations as a defense depends on the specific state and the terms of the franchise agreement and related documents. For instance, in Maryland, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This suggests that after this period, the statute of limitations could be used as a defense. However, the FDD does not explicitly address whether this limitation applies to guarantors.

In North Dakota, the FDD states that provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust, and inequitable. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply. Again, the document does not specify if this extends to guarantors.

Given the lack of explicit detail regarding guarantors and the statute of limitations, a prospective Bee Organized franchisee should consult with a legal professional to understand their rights and obligations, particularly concerning any guaranty they may be required to sign. It would be prudent to ask Bee Organized for clarification on how the statute of limitations applies to guarantors in their specific state and under the terms of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.