What is the Beehive Homes franchisee's covenant regarding the Names and Marks?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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6.5. Covenants.
- (a) Franchisee agrees, as a direct covenant with Franchisor and its Affiliates, that it will comply with all of the provisions of this Agreement related to the manner, terms and conditions of the use of the Names and Marks and the termination of any right on Franchisee's part to use any of the Names and Marks. Any non-compliance by Franchisee with this covenant or the terms of this Agreement related to the Names and Marks, or any unauthorized or improper use of the System or the Names and Marks, will cause irreparable damage to Franchisor and/or its Affiliates and is a material breach of this Agreement.
- (b) If Franchisee engages in such non-compliance or unauthorized and/or improper use of the System or the Names and Marks during or after the Term, Franchisor or any of its Affiliates, together with the successors and assigns of each, will be entitled to both temporary and permanent injunctive relief against Franchisee from any court of competent jurisdiction, in addition to all other remedies Franchisor or its Affiliates may have at law. Franchisee consents to the entry of such temporary and permanent injunctions. Franchisee must payall costs and expenses, including reasonable attorneys' fees, expert fees, costs and other expenses of litigation that Franchisor and/or its Affiliates may incur in connection with Franchisee's non-compliance with this covenant.
VII. OBLIGATIONS OF FRANCHISOR
Franchisor has the following responsibilities to Franchisee under this Agreement. Franchisor reserves the right to fulfill some or all of these responsibilities through one or more of its Affiliates or through unrelated third parties, in its sole business judgment. Franchisor may require Franchisee to make payment for any resulting services or products directly to the provider.
7.1. Location. Franchisor shall provide assistance to Franchisee in the selection and evaluation of the Location. However, Franchisee is solely responsible for selecting and obtaining the Location for the Home and for construction of the Home at the Location. Franchisee is solely
responsible for the negotiation of all agreements and other contracts relating to the Location and all construction and improvement thereon. Franchisee shall consult with its own legal counsel and other advisors prior to entering into any agreement or contract respecting the Location and any construction or improvement at the Location.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, franchisees must adhere to specific covenants regarding the use of the brand's Names and Marks. These covenants are designed to protect the integrity and uniformity of the Beehive Homes brand. Franchisees must comply with all provisions in the franchise agreement related to the use, terms, and conditions of the Names and Marks, including the proper termination of any rights to use them. Non-compliance or unauthorized use constitutes a material breach of the agreement, which can cause irreparable damage to Beehive Homes.
Beehive Homes is entitled to both temporary and permanent injunctive relief from a court of competent jurisdiction if a franchisee engages in non-compliance or unauthorized use of the System or the Names and Marks, whether during or after the term of the agreement. In addition to injunctive relief, Beehive Homes is entitled to all other remedies available by law. The franchisee is responsible for covering all costs and expenses, including reasonable attorneys' fees, expert fees, and other litigation expenses, that Beehive Homes incurs due to the franchisee's non-compliance with these covenants.
Furthermore, if the franchisee's name or the name of any entity with equity interest contains any reference to "Bee Hive" or any Beehive Homes trademark, the franchisee agrees to change the name within 30 days of the effective date to remove such references. The franchisee also agrees not to challenge Beehive Homes' use of any trade name, trademark, or internet domain name based on similarity to the franchisee's name or likelihood of confusion. The franchisee's name cannot be used in connection with any trade or business except the Beehive Homes franchise business.