What is the heading of Article 18.G in the Bee Organized Franchise Agreement that is being amended?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.G. 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.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, Article 18.G of the Franchise Agreement is being amended in several states, including Illinois, Maryland, and North Dakota. The heading of this article is "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction." These amendments are made to comply with franchise laws in those specific states.
For a prospective Bee Organized franchisee, this means that the standard franchise agreement is being modified to align with the legal requirements of the state where the franchise will operate. These modifications address important legal considerations such as governing law, dispute resolution methods (mediation and arbitration), and jurisdictional consent. The amendments ensure that franchisees' rights are protected under state-specific franchise laws.
Specifically, the Illinois amendment ensures that Illinois law governs the agreement and voids any provisions designating jurisdiction or venue outside of Illinois, although arbitration outside Illinois is permitted. The Maryland amendment allows franchisees to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. These amendments are crucial for franchisees as they clarify their legal rights and options within their specific state, ensuring compliance with local regulations and providing a framework for dispute resolution.