How will disputes related to the Beehive Homes Franchise Agreement be settled?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
XVI. ARBITRATION
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 the 2025 Beehive Homes Franchise Disclosure Document, any dispute arising from the Franchise Agreement will be settled through arbitration under the rules of the American Arbitration Association. The arbitration costs will be equally shared between Beehive Homes and the franchisee. The location for all hearings will be Salt Lake City, Utah, and class action claims or consolidation with other proceedings are not allowed.
Under the Federal Arbitration Act, any disputes regarding the enforceability or scope of the arbitration agreement will be resolved. The document clarifies that the FAA supersedes any state laws that might restrict the enforcement of the arbitration agreement, including those related to the arbitration site. If any part of the arbitration clause is deemed unenforceable, it will be removed without affecting the rest of the clause.
Beehive Homes retains the right to pursue injunctive relief in any court with jurisdiction to protect its trademarks or proprietary rights to prevent irreparable harm to the company, its affiliates, or the franchise system. Franchisees can only seek damages or remedies from Beehive Homes, its successors, or assigns for any arbitrable claim. The franchisee cannot hold the shareholders, directors, officers, employees, agents, or representatives of Beehive Homes or its affiliates liable or name them as parties in any litigation or other proceedings.