Under what condition is it unlawful for Bee Organized to repurchase a franchisee's business?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached Bee Organized Enterprises, LLC Franchise Agreement (the "Franchise Agreement"):
Under Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C.(6) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y.
Gen.
Bus.
Law Sections 687.4 and 687.5 be satisfied.
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 and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y.
Gen.
Bus.
Law Sections 687.4 and 687.5 be satisfied.
Article 18 of the Franchise Agreement and, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
- Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, amendments to the Bee Organized franchise agreement recognize the requirements of New York General Business Law, Article 33, Sections 680 through 695, and the regulations promulgated. These amendments include provisions ensuring that all rights and causes of action arising in favor of the franchisee under these New York laws remain in force. The intent is to satisfy the non-waiver provisions of N.Y. General Business Law Sections 687.4 and 687.5. Therefore, it would be unlawful for Bee Organized to enforce any agreement that waives the rights conferred upon the franchisee by New York General Business Law, Sections 680-695.
These amendments specifically address scenarios related to the conditions for approval of transfer under Article 14.C and the conditions for renewal under Article 15.B of the franchise agreement. In both cases, language is added to ensure that the franchisee's rights and causes of action under New York law are not waived. Additionally, a new subarticle 18.Z is added to Article 18 of the franchise agreement, explicitly stating that nothing in the agreement should be considered a waiver of any right conferred upon the franchisee by New York General Business Law, Sections 680-695.
For a prospective Bee Organized franchisee in New York, this means that the franchise agreement cannot force them to give up their legal rights under New York's franchise laws. This provides an added layer of protection, ensuring that franchisees can pursue legal remedies if Bee Organized violates those laws. Franchisees should consult with an attorney to fully understand their rights under New York General Business Law Sections 680-695 and how these non-waiver provisions protect them.