Is Bee Organized required to include a renewal provision in its franchise agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
A provision that permits us to refuse to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.
This section does not require a renewal provision.
Under Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B.(8) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, whether or not Bee Organized is required to include a renewal provision in its franchise agreement depends on the state where the franchise is located. Specifically, an amendment to the Michigan FDD states that the FDD does not require a renewal provision. However, Michigan prohibits refusing to renew a franchise on terms generally available to other franchisees of the same class or type under similar circumstances.
In Minnesota, the Franchise Agreement is supplemented to ensure that all rights enjoyed by the franchisee and any causes of action arising in the franchisee's favor from the provisions of the Minnesota Franchise Act remain in force. Minnesota law requires that, except in certain specified cases, the franchisee be given 180 days' notice of nonrenewal of the agreement by Bee Organized.
For prospective Bee Organized franchisees, this means that the specific terms and conditions regarding renewal rights can vary based on state laws. Franchisees should carefully review the FDD and any state-specific addenda to understand their rights and obligations regarding franchise renewal. It is also advisable to seek legal counsel to ensure full comprehension of these provisions and their implications.