Can Bee Organized require litigation to be conducted outside of the franchisee's state?

According to Bee Organized's 2025 Franchise Disclosure Document, the franchise agreement's stipulations regarding where litigation must occur are subject to state laws, potentially preventing Bee Organized from enforcing out-of-state litigation requirements for franchisees in certain states. For instance, the Michigan FDD Amendment explicitly states that any provision requiring litigation to be conducted outside of Michigan is void and unenforceable against a Michigan franchisee. However, this does not prevent a franchisee from agreeing to out-of-state litigation at the time of the dispute. Similarly, the Illinois Franchise Agreement Amendment indicates that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside of Illinois may be permissible. The North Dakota Franchise Agreement Amendment notes that provisions requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota. Finally, the Rhode Island FDD Amendment states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.

These state-specific amendments highlight the importance of franchisees understanding the legal protections afforded to them by their state's franchise laws. The enforceability of certain clauses within the Bee Organized franchise agreement, such as those pertaining to jurisdiction and venue, can vary significantly depending on the franchisee's location. This means that a provision that is valid and enforceable in one state may be deemed void or unenforceable in another, offering franchisees varying degrees of protection.

For a prospective Bee Organized franchisee, this information underscores the necessity of carefully reviewing the FDD and any state-specific amendments with legal counsel. Franchisees should be aware of which provisions of the franchise agreement are subject to state law limitations and how those limitations may impact their rights and obligations. Understanding these nuances can help franchisees make informed decisions and protect their interests in the event of a dispute with Bee Organized.

It is also important to note that while some states may invalidate provisions requiring out-of-state litigation, franchisees may still have the option to agree to such terms at the time a dispute arises. Therefore, franchisees should carefully consider the implications of any agreements they enter into during the course of litigation, as they may be waiving certain protections afforded to them by state law.