To whom must a Beehive Homes franchisee provide written notification of any trademark-related claim?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU must notify US in writing of any claim, demand or suit based upon or in connection with any or all rights which YOU have to use the trademarks, service marks, trade names, logotypes or commercial symbols. YOU must also notify US in writing of the use of, or claims of rights to, a trademark identical to or confusingly similar to the names and marks. WE have the right to defend any such claims, demands or suits. However, WE are not obligated by the Franchise Agreement or otherwise to protect YOU against any such claim, demand or suit, nor are WE obligated by the Franchise Agreement or otherwise to protect YOU against claims of infringement or unfair competition. YOU are given the right to protect YOURSELF, at YOUR sole cost, from any claims if WE elect not to.
If at any time it becomes advisable in OUR sole discretion to modify or discontinue any use of the names and marks and/or use one or more additions to or substitutes for the names and marks, YOU will do so and OUR sole obligation will be to reimburse YOU for tangible costs in changing signs and printed matter to comply with this obligation.
Source: Item 13 — TRADEMARKS (FDD pages 22–23)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a franchisee must notify 'US' in writing of any claim, demand, or suit related to their rights to use the trademarks, service marks, trade names, logotypes, or commercial symbols. The franchisee must also provide written notification regarding the use of, or claims to, a trademark that is identical or confusingly similar to the names and marks. In this context, 'US' refers to the franchisor or the entity granting the franchise.
Beehive Homes retains the right to defend any such claims, demands, or suits. However, the franchisor is not obligated by the Franchise Agreement to protect the franchisee against such claims, demands, or suits, including claims of infringement or unfair competition. The franchisee has the right to protect themselves, at their own cost, if Beehive Homes chooses not to defend the claims.
This clause is important for prospective franchisees because it clarifies their responsibilities and potential liabilities regarding trademark issues. While Beehive Homes has the right to defend trademark claims, they are not obligated to do so, potentially leaving the franchisee to bear the costs of defending themselves. This is a fairly standard practice in franchising, where the franchisee often bears the responsibility for local legal issues, while the franchisor maintains control over the brand's overall defense strategy.
Furthermore, Beehive Homes retains the right to modify or discontinue the use of any names and marks, or to use additions or substitutes for the names and marks, at its sole discretion. In such cases, the franchisee is obligated to comply, and Beehive Homes' only obligation is to reimburse the franchisee for tangible costs in changing signs and printed matter to comply with this obligation. This highlights the importance of understanding the potential costs associated with rebranding or updating signage and materials if required by the franchisor.