What is the deadline for a Beehive Homes franchisee to notify the franchisor of a trademark claim?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU must notify US in writing of any claim, demand or suit based upon or in connection with any or all rights which YOU have to use the trademarks, service marks, trade names, logotypes or commercial symbols. YOU must also notify US in writing of the use of, or claims of rights to, a trademark identical to or confusingly similar to the names and marks. WE have the right to defend any such claims, demands or suits. However, WE are not obligated by the Franchise Agreement or otherwise to protect YOU against any such claim, demand or suit, nor are WE obligated by the Franchise Agreement or otherwise to protect YOU against claims of infringement or unfair competition. YOU are given the right to protect YOURSELF, at YOUR sole cost, from any claims if WE elect not to.
Source: Item 13 — TRADEMARKS (FDD pages 22–23)
What This Means (2025 FDD)
According to Beehive Homes's 2025 Franchise Disclosure Document, franchisees must notify the franchisor in writing of any claim, demand, or suit related to their rights to use the trademarks, service marks, trade names, logotypes, or commercial symbols. This notification requirement also extends to any use of, or claims of rights to, a trademark that is identical or confusingly similar to the names and marks of Beehive Homes.
Beehive Homes retains the right to defend such claims, demands, or suits, but is not obligated to do so under the Franchise Agreement. If Beehive Homes chooses not to defend a claim, the franchisee has the right to protect themselves at their own cost. This arrangement places the onus on the franchisee to promptly inform Beehive Homes of any potential trademark issues to allow the franchisor to decide whether to take action or allow the franchisee to handle the matter independently.
While the FDD specifies the franchisee's responsibility to notify Beehive Homes of trademark claims, it does not specify a deadline for doing so. It is crucial for prospective franchisees to understand the implications of this notification requirement and the potential costs associated with defending trademark claims. Franchisees should seek clarification from Beehive Homes regarding the expected timeframe for notifying the franchisor of any trademark-related issues to ensure compliance with the Franchise Agreement and to protect their business interests.