Where must all mediation, arbitration, and litigation proceedings be conducted for a Bee Organized franchise?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
| 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. |
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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, all mediation, arbitration, and litigation proceedings must occur in a specific location. Specifically, these proceedings must be conducted in the state court of general jurisdiction within or closest to Johnson County, Kansas. Alternatively, if appropriate, the proceedings can take place in the United States District Court nearest to Bee Organized's corporate headquarters at the time the action is filed. This requirement is subject to applicable state law.
This forum selection clause means that any legal disputes arising from the franchise agreement will be resolved in Kansas, regardless of where the franchisee's business is located. This could increase costs for franchisees located far from Kansas, as they would need to travel and potentially hire local counsel in Kansas.
It is common for franchise agreements to include forum selection clauses that designate a specific location for dispute resolution. Franchisees should carefully consider the implications of this clause, especially if they are located far from the designated forum. They may want to consult with an attorney to understand their rights and obligations under the franchise agreement.