What is a Beehive Homes franchisee required to do if they face a claim related to the use of trademarks?
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, if a franchisee faces a claim, demand, or suit related to the use of trademarks, service marks, trade names, logotypes, or commercial symbols, they must notify Beehive Homes in writing. The franchisee must also inform Beehive Homes in writing if they become aware of the use of, or claims to, a trademark that is identical or confusingly similar to the Beehive Homes names and marks.
Beehive Homes retains the right to defend any such claims, demands, or suits. However, the FDD clarifies that Beehive Homes is not obligated to protect the franchisee against such claims, demands, or suits, nor are they obligated to protect the franchisee against claims of infringement or unfair competition. This means that while Beehive Homes has the option to defend the franchisee, they are not required to do so.
The franchisee has the right to protect themselves, at their own cost, from any claims if Beehive Homes chooses not to defend them. This could involve hiring their own legal counsel and mounting their own defense. If Beehive Homes decides to modify or discontinue the use of any names and marks, or use additions or substitutes, the franchisee is obligated to comply. In such cases, Beehive Homes' sole obligation is to reimburse the franchisee for tangible costs in changing signs and printed matter to comply with this obligation.
This section of the FDD outlines the responsibilities and rights of both the franchisor and franchisee in the event of trademark-related claims. It is important for prospective franchisees to understand that while they are required to notify Beehive Homes of any claims, Beehive Homes is not necessarily obligated to defend them. The franchisee may need to bear the cost of their own defense if Beehive Homes chooses not to intervene, highlighting a potential financial risk.