factual

In Michigan, can Bee Organized require litigation to be conducted outside of the state?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

Amendments to the Bee Organized Franchise Disclosure Document

  • F.

A provision requiring that litigation be conducted outside this state.

This shall not preclude you from entering into an agreement, at the time of litigation, to conduct litigation at a location outside this state.

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

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, if a franchisee is located in Michigan, Bee Organized cannot require that litigation be conducted outside of the state. However, the Michigan FDD amendment states that a franchisee can agree at the time of litigation to conduct litigation at a location outside of Michigan. This protects the franchisee from being forced into out-of-state litigation but allows for flexibility if both parties agree to it later.

This provision is designed to protect franchisees in Michigan from unfair forum selection clauses that could force them to litigate disputes in a distant or inconvenient location. Such clauses can create a significant financial and logistical burden for franchisees, potentially discouraging them from pursuing legitimate claims against Bee Organized. By voiding these clauses, Michigan law aims to level the playing field and ensure that franchisees have access to a fair legal process.

It is important for prospective Bee Organized franchisees in Michigan to understand this protection, as the standard franchise agreement might contain language suggesting out-of-state litigation. This amendment clarifies that such provisions are unenforceable in Michigan, reinforcing the franchisee's right to litigate within their home state unless they specifically agree otherwise at the time a dispute arises. This ensures that franchisees are not unknowingly waiving their rights and can make informed decisions about dispute resolution.

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.