Is the Beehive Homes franchisee considered an agent of the franchisor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
XVII. RELATIONSHIP OF THE PARTIES
- 17.1. Independent Contractors. Franchisor and Franchisee have the relationship of owner and independent contractor and are not and shall not be considered as joint venturers, partners, employees, servants or agents of each other, and neither shall have the power to bind or obligate the other except as set forth in this Agreement. Franchisee shall conspicuously identify itself in all dealings with customers, suppliers, public officials, employees and others as the owner of the Home under a franchise granted by Franchisor and shall place such notices of independent ownership on such forms, business cards, stationery and advertising and other materials as Franchisor may require from time to time. Franchisee agrees to include in all agreements and contracts a statement that each "franchise is independently owned and operated."
- 17.2. No Liability for Acts of Other Party. Franchisee agrees not to employ any of the Names and Marks in signing any contract or applying for any license or permit, or in a manner that may result in Franchisor's liability for any of Franchisee's indebtedness or obligations, and that Franchisee will not use the Names and Marks in any way that has not been expressly authorized. Neither Franchisor nor Franchisee will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that their respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing. Franchisor will be obligated for any damages to any person or property directly or indirectly arising out of the operation of the Home or the business Franchisee conducts pursuant to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee is explicitly considered an independent contractor and not an agent of the franchisor. Section 17.1 clearly states that the relationship between Beehive Homes and its franchisees is that of owner and independent contractor. They are not joint venturers, partners, employees, servants, or agents of each other. This distinction means that neither party has the power to legally bind or obligate the other, except as specifically outlined in the Franchise Agreement.
This independent contractor status has several implications for a prospective Beehive Homes franchisee. The franchisee is responsible for conspicuously identifying their business as independently owned and operated under a Beehive Homes franchise in all dealings with customers, suppliers, public officials, and employees. This includes placing notices of independent ownership on forms, business cards, stationery, advertising, and other materials as required by Beehive Homes. Furthermore, the franchisee must include a statement in all agreements and contracts indicating that the franchise is independently owned and operated.
Beehive Homes emphasizes that franchisees cannot use the brand's Names and Marks in any way that could create liability for the franchisor, such as signing contracts or applying for licenses without express authorization. Neither Beehive Homes nor the franchisee can make agreements, warranties, or incur debts on behalf of the other, unless expressly authorized in writing. Beehive Homes is not liable for damages arising from the franchisee's operation of the Home or business. This reinforces the separation between the franchisor and franchisee, ensuring that the franchisee is responsible for their own business operations and obligations.