What allegations were made in the William Fisher complaint against Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
On May 9, 2023, William Fisher, as the Attorney-in-Fact of Toby Butler, filed a Complaint (Case No. D-1215-CV-2023-00407) in the Twelfth Judicial District Court for the County of Otero, State of New Mexico, against Alamo Care, LLC d/b/a/ Bee Hive Homes of Alamogordo; Bee Hive Homes of America, Inc.; Jay T. Manning; and Elena Smarr in her capacity as the Administrator of Bee Hive Homes of Alamogordo alleging negligence, unfair trade practices and punitive damages. Bee Hive Homes of America, Inc. has denied any liability in the matter. The suit is ongoing.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a complaint was filed on May 9, 2023, by William Fisher as the Attorney-in-Fact of Toby Butler. The complaint, filed in the Twelfth Judicial District Court for the County of Otero, State of New Mexico, alleges negligence, unfair trade practices, and seeks punitive damages. The defendants named in the complaint are Alamo Care, LLC d/b/a/ Bee Hive Homes of Alamogordo; Bee Hive Homes of America, Inc.; Jay T. Manning; and Elena Smarr in her capacity as the Administrator of Bee Hive Homes of Alamogordo. Bee Hive Homes of America, Inc. has denied any liability, and the suit is currently ongoing.
For a prospective Beehive Homes franchisee, this litigation reveals potential risks associated with operating a Beehive Homes franchise. The allegations of negligence and unfair trade practices could indicate potential operational or management issues within the Beehive Homes system, or at least at the Alamogordo location. The request for punitive damages suggests the plaintiff is seeking significant compensation beyond just covering direct losses, implying potentially serious misconduct.
It is important to note that Beehive Homes of America, Inc. has denied any liability in the matter, and the suit is ongoing, meaning the allegations have not been proven in court. However, the existence of such a lawsuit should prompt a prospective franchisee to conduct thorough due diligence. This includes inquiring about the specific circumstances surrounding the case, the policies and procedures Beehive Homes has in place to prevent similar issues, and the potential financial impact of an unfavorable outcome in the lawsuit.
Prospective franchisees should also consider seeking legal counsel to assess the risks associated with this litigation and to understand their potential liability as a franchisee. Understanding the nature of these allegations and the franchisor's response is a crucial part of making an informed decision about investing in a Beehive Homes franchise.