Under what conditions can a Bee Organized franchisee terminate the franchise agreement?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
") and, if Franchisor and Franchisee both sign Bee Organized Enterprises, LLC, as follows:
- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void
- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.G. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45) are met independently without reference to this amendment.
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- 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.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to Bee Organized Enterprises, LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Bee Organized Enterprises, LLC | Franchisee: | |
|---|---|---|
| By: | Signature | |
| Signature | ||
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
MARYLAND FRANCHISE AGREEMENT AMENDMENT
Amendments to the Bee Organized Franchise Agreement:
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Bee Organized Enterprises, LLC Franchise Agreement (the "Franchise Agreement"), as follows:
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- The franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
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- The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction,"
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
Based on the 2025 Bee Organized Franchise Disclosure Document, the specific conditions under which a franchisee can terminate the franchise agreement are not detailed in the provided excerpts. The document does mention certain rights regarding termination and non-renewal, particularly concerning the Illinois and Minnesota Franchise Acts. These acts provide franchisees with specific rights related to termination and non-renewal, and the Bee Organized franchise agreement amendments for these states acknowledge these rights. For example, Minnesota law requires that franchisees be given 180 days' notice of nonrenewal in certain cases. The Wisconsin FDD Amendment indicates that the Wisconsin Fair Dealership Law may also affect the termination provisions of the Franchise Agreement.
However, the excerpts primarily focus on amendments related to state-specific franchise laws, particularly those of Illinois, Minnesota, North Dakota, California, Washington, and Wisconsin. These amendments generally aim to ensure that franchisees' rights under these state laws are not waived or superseded by the franchise agreement. For instance, the North Dakota amendment specifies that provisions requiring franchisees to sign a general release upon renewal or consent to termination or liquidated damages are not enforceable in North Dakota. Similarly, the California amendment ensures that franchisees cannot waive claims under California franchise law.
Given the lack of explicit details on termination conditions within the provided excerpts, it is crucial for a prospective Bee Organized franchisee to carefully review Item 17 of the FDD, which typically covers renewal, termination, transfer, and dispute resolution. Additionally, they should consult with a franchise attorney to fully understand their termination rights and obligations under the franchise agreement and any applicable state laws. Specifically, the franchisee should inquire about the circumstances under which they can terminate the agreement, the procedures for doing so, and any potential penalties or liabilities associated with termination.