Can a Beehive Homes Franchisee permit the use of the Home for purposes objected to by the Franchisor?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
, or divided loyalty.
- 3.4. Franchisee Name. Franchisee shall operate the Home under the trade name "BEE HIVE HOMES of ____________________" (the "Trade Name") and shall use no other name in connection with any operations conducted by Franchisee without the prior written approval of Franchisor. Franchisor may change the Trade Name or the way in which it is depicted, at its sole option. Franchisee shall use the Trade Name and such other of the Names and Marks as Franchisee may be authorized to use exclusively for the purpose of operating the Home pursuant to the franchise granted by this Agreement.
Franchisee shall display the Franchisee's Trade Name for all purposes, and on all signs, stationary, business cards, advertising materials and other media, in strict compliance with the requirements set forth in the Manual.
Franchisee shall file and keep current, in the county and/or state in which Franchisee's Home is located and at such other places as may be required by law, a "fictitious name certificate" or comparable instrument, for the Trade Name. Franchisee shall not, without Franchisor's prior written approval, use any of the Names and Marks, or the name "BEE HIVE HOMES®," or any form thereof in connection with (i) any corporate, partnership or other entity name or in any corporate or other entity filing with any political subdivision; (ii) any internet-related name (including a domain name); or (iii) any other business. Franchisee hereby agrees that if this Agreement is terminated for any reason, Franchisee shall immediately discontinue use of the Trade Name, as well as the Names and Marks.
IV. INITIAL FRANCHISE FEE AND FRANCHISE ROYALTY
- 4.1. Initial Franchise Fee. Franchisee hereby promises and agrees to pay to Franchisor an initial franchise fee (the "Initial Franchise Fee") of Seventy-Five Thousand Dollars ($75,000.00), payable one-third upon signing of this Agreement and the balance in full upon the earlier to occur of the following: (i) the funding of any construction loan for the Home;
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
Based on the 2025 Beehive Homes Franchise Disclosure Document, the franchisee's ability to use the Home for purposes not approved by the franchisor is limited. The franchisee must operate the Home under the trade name "BEE HIVE HOMES of ________" and use the Names and Marks exclusively for operating the Home as granted by the franchise agreement. The franchisee cannot use any other name without prior written approval from Beehive Homes. Beehive Homes retains the right to change the Trade Name or its depiction at its sole discretion.
Beehive Homes provides general architectural and design drawings as guidelines for the Home's trade dress, and any variations, alterations, or modifications require the franchisor's prior written approval. The franchisee is responsible for engaging professionals to prepare final plans, construct improvements, and obtain permits, but these final plans must be approved by Beehive Homes for compliance with trade dress guidelines before submission for building permits. This ensures uniformity and adherence to the franchisor's standards.
The franchisee acknowledges that all modifications and alterations to the design of the Home or to the System are owned by Beehive Homes. The franchisee only has the right to use such modifications and alterations during the term of the agreement. Upon termination or expiration of the agreement, the franchisee must cease using the Names and Marks and return or destroy all related documents and advertising items at Beehive Homes's election. This protects Beehive Homes's proprietary property and ensures consistent brand representation.