Does the Beehive Homes franchise agreement specify that the consent to jurisdiction abrogates the rights of the parties to enforce the agreement through arbitration?
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 the 2025 Beehive Homes Franchise Disclosure Document, the franchise agreement does not state that consent to jurisdiction abrogates the rights of the parties to enforce the agreement through arbitration. Instead, the document outlines that any disputes arising from the agreement will be settled through arbitration under the American Arbitration Association's Commercial Arbitration Rules. The arbitration will take place in Salt Lake City, Utah, and the costs will be equally shared between Beehive Homes and the franchisee.
Specifically, the Beehive Homes franchise agreement emphasizes that the Federal Arbitration Act (FAA) preempts any state law restrictions on the enforcement of the arbitration clause. This means that any state laws that might limit the ability to enforce the arbitration agreement will not apply, ensuring that the arbitration clause is upheld according to its terms. The agreement also includes a clause stating that if any provision within the arbitration section is deemed unenforceable, it can be removed without affecting the validity of the remaining provisions.
However, Beehive Homes retains the right to seek injunctive relief in any court with jurisdiction to protect its trademarks or proprietary rights, ensuring that the company can act swiftly to prevent irreparable harm to its brand or the franchise system. This exception allows Beehive Homes to bypass arbitration in cases where immediate legal action is necessary to protect its intellectual property. The agreement also specifies that only Beehive Homes, or its successors or assigns, can be held liable for damages or remedies in any arbitrable claim, protecting the company's shareholders, directors, officers, employees, agents, and representatives from being named in litigation or other proceedings.