Which arbitration rules apply to Beehive Homes disputes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
Any dispute, controversy or claim arising out of or in relation to this Agreement, or any modification thereof, or the breach thereof (including, but not limited to contract, tort and statutory claims) shall be settled by arbitration under the auspices of the American Arbitration Association, pursuant to its Commercial Arbitration Rules and judgment rendered on the arbitration award may be entered in any court having jurisdiction thereof. The costs of the arbitration will be borne equally by the parties. The Franchisor and Franchisee agree that Salt Lake City, Utah shall be the site for all hearings held under this Article, and that no party shall pursue class claims and/or consolidate the arbitration with any other proceedings to which the Franchisor or Franchisor is a party.
Any disputes concerning the enforceabilityor scope of this Article shall be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1 et seq. (the "FAA"), and the Franchisee acknowledges that, notwithstanding any contrary language in this Agreement or in the Franchise Disclosure Document, the FAA preempts any state law restrictions on the enforcement of this Article in this Agreement according to its terms, including any restrictions on the site of the arbitration.
If any provision of this Article is unenforceable, that provision is severable from the remainder of this Article, and the balance of this Article shall remain in full force and effect. In addition, any ruling invalidating any other portion of this Agreement shall not affect the validity of this Article.
Notwithstanding any other provision of this Article, Franchisor may bring an action for injunctive relief in any court having jurisdiction to enforce the Franchisor's trademark or proprietary rights, in order to avoid irreparable harm to the Franchisor, it affiliates, or the franchise System as a whole.
The sole entity against which the Franchisee may seek damages or any remedy under law or equity for any arbitrable claim is Franchisor or its successors or assigns. The Franchisee agrees that the shareholders, directors, officers, employees, agents and representatives of the Franchisor and of its affiliates, shall not be liable on or named as a party in any litigation or other proceedings
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, any disputes arising from the franchise agreement will be settled through arbitration under the American Arbitration Association (AAA), following its Commercial Arbitration Rules. The costs associated with the arbitration will be equally shared between Beehive Homes and the franchisee. The arbitration hearings will take place in Salt Lake City, Utah, and franchisees are prohibited from pursuing class action claims or consolidating the arbitration with other proceedings involving Beehive Homes.
The FDD specifies that the Federal Arbitration Act (FAA) governs any disputes regarding the enforceability or scope of the arbitration agreement, superseding any conflicting state laws. This ensures that the arbitration clause is enforced according to its terms, including the designated location for arbitration. However, Beehive Homes retains the right to seek injunctive relief in any court with jurisdiction to protect its trademarks or proprietary rights, preventing potential irreparable harm to the company, its affiliates, or the franchise system.
The document also clarifies that franchisees can only seek damages or remedies from Beehive Homes itself, or its successors or assigns, for any arbitrable claim. The shareholders, directors, officers, employees, agents, and representatives of Beehive Homes and its affiliates are not liable and cannot be named as parties in any litigation or other proceedings. This provision aims to protect individuals associated with the company from personal liability in disputes.