What is the condition for Beehive Homes to reimburse expenses related to infringement disputes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Franchisee will immediately notify Franchisor of any infringement or dilution of or challenge to its use of any of the Names and Marks and will not, absent a court order or Franchisor's prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. Franchisor will take the action it deems appropriate with respect to such challenges and claims and has the sole right to handle disputes concerning use of all or any part of the Names and Marks or the System. Franchisee will fully cooperate with Franchisor and its Affiliates in these matters. Franchisor will reimburse Franchisee for expenses incurred by it as the direct result of activities undertaken by it at Franchisor's prior written request and specifically relating to the dispute at issue. Franchisor will not reimburse Franchisee for any other expenses incurred by it for cooperating with Franchisor or its Affiliates.
- (ii) Franchisee hereby appoints Franchisor as Franchisee's exclusive attorney-in-fact, to prosecute, defend and/or settle all disputes of this type at Franchisor's sole option. Franchisee will sign any documents Franchisor or its Affiliates believe are necessary to prosecute, defend or settle any dispute or obtain protection for the Names and Marks and the System and will assign to Franchisor
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee incurs expenses related to infringement disputes, Beehive Homes will only reimburse those expenses if they are a direct result of activities the franchisee undertook at Beehive Homes' prior written request and specifically relating to the dispute at issue. Beehive Homes will not cover any other expenses the franchisee incurs while cooperating with Beehive Homes or its affiliates.
This means that a Beehive Homes franchisee must obtain explicit written approval from Beehive Homes before engaging in any activities related to an infringement dispute if they want to be reimbursed for the associated expenses. This policy gives Beehive Homes control over how such disputes are handled and ensures that franchisees do not take actions that could be detrimental to the brand or its legal position.
Furthermore, the franchisee appoints Beehive Homes as their exclusive attorney-in-fact to manage these disputes at Beehive Homes' discretion. The franchisee is obligated to sign any documents Beehive Homes deems necessary for the dispute's resolution or to protect the Names and Marks and the System, and to assign any related claims to Beehive Homes. All financial recoveries from these disputes will be for Beehive Homes' account, highlighting the franchisor's control and benefit in these legal matters.