What law governs matters relating to arbitration for the Bee Organized franchise agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this Hawaii State amendment to Bee Organized Enterprises, LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Bee Organized Enterprises, LLC | Franchisee: | |
|---|---|---|
| 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.
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
- 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, the laws governing arbitration depend on the franchisee's location. For instance, the Illinois FDD Amendment states that while Illinois law governs the agreements between the parties, a Bee Organized franchise agreement may still provide for arbitration outside of Illinois. The Maryland FDD Amendment notes potential disputes regarding the enforceability of forum selection requirements in arbitration due to the Federal Arbitration Act and Maryland franchise regulations. The Washington Franchise Agreement Amendment specifies that for franchises purchased in Washington, the arbitration site will be in Washington or a mutually agreed-upon location.
For franchisees in North Dakota, the North Dakota Franchise Agreement Amendment indicates that covenants requiring franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable. Additionally, for North Dakota franchisees, North Dakota law shall apply. These state-specific amendments highlight the importance of understanding the specific legal requirements and protections in the franchisee's state.
These stipulations mean that prospective Bee Organized franchisees need to be aware of the specific state laws that apply to their franchise agreement, particularly concerning dispute resolution and arbitration. It is essential to review the FDD and any state-specific amendments carefully and to seek legal counsel to understand their rights and obligations fully. The interplay between state franchise laws and federal laws like the Federal Arbitration Act can create complexities that require careful consideration.