Did Beehive Homes admit liability in the National Fair Housing Alliance lawsuit?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
On May 15, 2020, a Complaint was filed in the U.S. District Court for the District of Utah (Civil Action No. 2:20-CV-00312-DBP) by the National Fair Housing Alliance against Bee Hive Homes, Inc. and one of its franchise homes in Utah alleging discrimination in violation of The Fair Housing Act ("FHA'"), 42 U.S.C. §3602; Section 504 of the Rehabilitation Act of 1973 ("RA"), 29 U.S.C. §794; and Section 1557 of the Patient Protection and Affordable Care Act ("'ACA"), 42 U.S.C. §18116 against fictitious deaf persons. Bee Hive Homes, Inc. denied any liability in the matter. The matter was settled and on March 26, 2021, the Court entered its Order granting a motion for dismissal with prejudice and retention of jurisdiction by the Court to enforce the settlement agreement if needed.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes, Inc. denied any liability in the lawsuit filed by the National Fair Housing Alliance. The lawsuit, filed on May 15, 2020, in the U.S. District Court for the District of Utah, alleged discrimination in violation of The Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, and Section 1557 of the Patient Protection and Affordable Care Act against fictitious deaf persons. The matter was settled, and on March 26, 2021, the Court granted a motion for dismissal with prejudice, retaining jurisdiction to enforce the settlement agreement if needed.
This means that while Beehive Homes resolved the legal dispute, they did not concede any fault or responsibility for the alleged discriminatory practices. Settling a lawsuit without admitting liability is a common legal strategy. It allows a company to avoid the costs and uncertainties of a trial while still resolving the dispute.
For a prospective Beehive Homes franchisee, this information indicates that Beehive Homes has faced allegations of discrimination and has taken steps to resolve such claims. While the lawsuit was dismissed, it is important for potential franchisees to understand the company's approach to fair housing and non-discrimination laws. This may involve further due diligence to ensure that the franchisee's business practices align with these legal requirements and the franchisor's policies.