What is the dependency for Beehive Homes to reimburse a franchisee's expenses related to 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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes will reimburse a franchisee's expenses related to infringement disputes only if the franchisee incurs those expenses as a direct result of activities undertaken 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 franchisee cannot independently engage in activities related to an infringement dispute and expect reimbursement. The franchisee must obtain explicit written approval from Beehive Homes before taking any action. This protects Beehive Homes from incurring unexpected or excessive costs related to disputes.
Furthermore, the FDD states that the franchisee must immediately notify Beehive Homes of any infringement or dilution of the Names and Marks. The franchisee is not allowed to communicate with any other person regarding any infringement, dilution, challenge, or claim without a court order or Beehive Homes' prior written consent. Beehive Homes has the sole right to handle disputes concerning the use of all or any part of the Names and Marks or the System. The franchisee is required to fully cooperate with Beehive Homes and its Affiliates in these matters.