In legal disputes between Bee Organized and its franchisees, is a jury trial permitted?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
18.K. WAIVER OF JURY TRIAL
FRANCHISOR AND FRANCHISEE IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF THEM AGAINST THE OTHER, WHETHER A LEGAL ACTION, IN MEDIATION, OR IN ARBITRATION.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, franchisees generally waive their right to a jury trial. Specifically, Article 18.K of the Franchise Agreement states that both Bee Organized and the franchisee "irrevocably waive trial by jury in any action, proceeding, or counterclaim, whether at law or in equity, brought by either of them against the other, whether a legal action, in mediation, or in arbitration." This means that any disputes between Bee Organized and a franchisee will be resolved by a judge or arbitrator, not a jury.
However, this waiver may not be enforceable in all situations or in all states. For instance, the North Dakota Franchise Investment Law does not allow for the enforcement of provisions requiring a franchisee to consent to a waiver of trial by jury. Therefore, if a Bee Organized franchise is located in North Dakota, the franchisee may have the right to a jury trial despite the waiver in the franchise agreement.
It's important for prospective Bee Organized franchisees to understand this jury trial waiver and its potential implications. While arbitration can sometimes be a faster and less expensive way to resolve disputes, it also means giving up the right to have a jury of one's peers decide the outcome. Franchisees should consult with an attorney to fully understand their rights and options in the event of a dispute with Bee Organized, especially considering the state-specific exceptions.