Does the Beehive Homes franchise agreement specify that the franchisee must comply with all provisions related to the termination of any right to use the Names and Marks?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Franchisee agrees, as a direct covenant with Franchisor and its Affiliates, that it will comply with all of the provisions of this Agreement related to the manner, terms and conditions of the use of the Names and Marks and the termination of any right on Franchisee's part to use any of the Names and Marks. Any non-compliance by Franchisee with this covenant or the terms of this Agreement related to the Names and Marks, or any unauthorized or improper use of the System or the Names and Marks, will cause irreparable damage to Franchisor and/or its Affiliates and is a material breach of this Agreement.
- (b) If Franchisee engages in such non-compliance or unauthorized and/or improper use of the System or the Names and Marks during or after the Term, Franchisor or any of its Affiliates, together with the successors and assigns of each, will be entitled to both temporary and permanent injunctive relief against Franchisee from any court of competent jurisdiction, in addition to all other remedies Franchisor or its Affiliates may have at law. Franchisee consents to the entry of such temporary and permanent injunctions. Franchisee must payall costs and expenses, including reasonable attorneys' fees, expert fees, costs and other expenses of litigation that Franchisor and/or its Affiliates may incur in connection with Franchisee's non-compliance with this covenant.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchise agreement explicitly states that franchisees must comply with all provisions related to the termination of any right to use the Names and Marks. This requirement is a direct covenant between the franchisee and Beehive Homes.
Non-compliance with the terms of the agreement related to the Names and Marks, or any unauthorized use of the system or the Names and Marks, constitutes a material breach of the agreement. Beehive Homes emphasizes that such breaches will cause irreparable damage to the franchisor and its affiliates.
Beehive Homes has the right to seek both temporary and permanent injunctive relief from a court of competent jurisdiction if a franchisee engages in non-compliance or unauthorized use of the system or the Names and Marks, whether during or after the term of the agreement. In addition to injunctive relief, Beehive Homes is entitled to all other remedies available at law. The franchisee is responsible for covering all costs and expenses, including reasonable attorneys' fees, expert fees, and other litigation-related expenses, incurred by Beehive Homes or its affiliates due to the franchisee's non-compliance with this covenant.