Which state's law applies to Bee Organized franchisees in North Dakota?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, for franchisees in North Dakota, North Dakota law shall apply. Specifically, Article 18 of the Bee Organized Franchise Agreement is amended to include the language stating that North Dakota law will govern the agreement for North Dakota franchisees.
This means that if a Bee Organized franchisee's business is located in North Dakota, or if the franchisee is a resident of North Dakota, the laws of North Dakota will be used to interpret and enforce the franchise agreement. This amendment is included to comply with the North Dakota Franchise Investment Law, Section 51-19.
This provision is important for prospective Bee Organized franchisees in North Dakota because it ensures that their rights and obligations under the franchise agreement are governed by the laws of their own state, providing a level of protection and familiarity. It also prevents Bee Organized from requiring North Dakota franchisees to adhere to provisions that are not enforceable under North Dakota law, such as those related to general releases, consent to termination or liquidated damages, and certain covenants not to compete.