What is a Beehive Homes franchisee required to do if they notice an infringement or dilution of the Beehive Homes Names and Marks?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(i) Franchisee will immediately notify Franchisor of any infringement or dilution of or challenge to its use of any of the Names and Marks and will not, absent a court order or Franchisor's prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. Franchisor will take the action it deems appropriate with respect to such challenges and claims and has the sole right to handle disputes concerning use of all or any part of the Names and Marks or the System. Franchisee will fully cooperate with Franchisor and its Affiliates in these matters. Franchisor will reimburse Franchisee for expenses incurred by it as the direct result of activities undertaken by it at Franchisor's prior written request and specifically relating to the dispute at issue. Franchisor will not reimburse Franchisee for any other expenses incurred by it for cooperating with Franchisor or its Affiliates.
- (ii) Franchisee hereby appoints Franchisor as Franchisee's exclusive attorney-in-fact, to prosecute, defend and/or settle all disputes of this type at Franchisor's sole option. Franchisee will sign any documents Franchisor or its Affiliates believe are necessary to prosecute, defend or settle any dispute or obtain protection for the Names and Marks and the System and will assign to Franchisor
any claims Franchisee may have related to these matters. Franchisor's decisions as to the prosecution, defense or settlement of the dispute will be final. All recoveries made as a result of disputes regarding use of all or part of the System or the Names and Marks will be for Franchisor's account.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are required to immediately notify Beehive Homes of any infringement, dilution, or challenge to the use of its Names and Marks. The franchisee is prohibited from communicating with any other person regarding the infringement, dilution, challenge, or claim without a court order or Beehive Homes' prior written consent.
Beehive Homes retains the sole right to take action it deems appropriate regarding challenges and claims related to the Names and Marks or the System. The franchisee must fully cooperate with Beehive Homes and its affiliates in these matters. Beehive Homes will reimburse the franchisee for expenses incurred as a direct result of activities undertaken at Beehive Homes' prior written request and specifically related to the dispute. However, Beehive Homes will not reimburse the franchisee for any other expenses incurred for cooperating with Beehive Homes or its affiliates.
Furthermore, the franchisee appoints Beehive Homes as their exclusive attorney-in-fact to prosecute, defend, and/or settle all disputes of this type at Beehive Homes' sole option. The franchisee is required to sign any documents Beehive Homes or its affiliates believe are necessary to prosecute, defend, or settle any dispute or obtain protection for the Names and Marks and the System, and will assign to Beehive Homes any related claims the franchisee may have. Beehive Homes' decisions regarding the prosecution, defense, or settlement of the dispute will be final, and all recoveries made as a result of disputes regarding the use of all or part of the System or the Names and Marks will be for Beehive Homes' account. This arrangement is typical in franchising, as the franchisor needs to protect its brand and intellectual property consistently across all locations.