factual

What section of the Bee Organized FDD Item 17 does the language in point 4 replace?

Bee_Organized Franchise · 2025 FDD

Answer from 2025 FDD Document

NO STATEMENT, QUESTIONNAIRE OR ACKNOWLEDGEMENT SIGNED OR AGREED TO BY A FRANCHISEE IN CONNECTION WITH THE COMMENCEMENT OF THE FRANCHISE RELATIONSHIP SHALL HAVE THE EFFECT OF: (I) WAIVING ANY CLAIMS UNDER ANY APPLICABLE STATE FRANCHISE LAW, INCLUDING FRAUD IN THE INDUCEMENT, OR (II) DISCLAIMING RELIANCE ON ANY STATEMENT MADE BY ANY FRANCHISOR, FRANCHISE SELLER, OR OTHER PERSON ACTING ON BEHALF OF THE FRANCHISOR. THIS PROVISION SUPERSEDES ANY OTHER TERM OF ANY DOCUMENT EXECUTED IN CONNECTION WITH THE FRANCHISE.

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

What This Means (2025 FDD)

According to Bee Organized's 2025 Franchise Disclosure Document, a specific provision within the Hawaii FDD amendment addresses the enforceability of franchisee acknowledgements and waivers. Specifically, point 4 states that no statement, questionnaire, or acknowledgement signed by a franchisee related to the commencement of the franchise relationship can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bee Organized or its representatives.

This provision explicitly supersedes any other conflicting term in any document executed in connection with the Bee Organized franchise. This means that even if other agreements contain language that could be interpreted as a waiver or disclaimer, this specific provision in the Hawaii FDD amendment takes precedence.

In practical terms, this protects Bee Organized franchisees in Hawaii by ensuring they cannot inadvertently waive their rights under franchise law or disclaim reliance on the franchisor's statements. This type of clause is particularly important in franchising, where there can be a power imbalance between the franchisor and franchisee. It aims to ensure that franchisees are not bound by clauses that could unfairly prejudice their legal rights.

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.