Does the Beehive Homes franchisor have any liability for the franchisee's indebtedness or obligations?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2. No Liability for Acts of Other Party. Franchisee agrees not to employ any of the Names and Marks in signing any contract or applying for any license or permit, or in a manner that may result in Franchisor's liability for any of Franchisee's indebtedness or obligations, and that Franchisee will not use the Names and Marks in any way that has not been expressly authorized. Neither Franchisor nor Franchisee will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that their respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing. Franchisor will be obligated for any damages to any person or property directly or indirectly arising out of the operation of the Home or the business Franchisee conducts pursuant to this Agreement.
- 17.3. Taxes. Neither Franchisor nor its Affiliates will have any liability for any sales, use, service, occupation, excise, gross receipts, income, property or other taxes, whether levied upon Franchisee or the Home, in connection with the business Franchisee conducts. Payment of all such taxes are Franchisee's sole responsibility.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the franchisee agrees not to employ any of the brand's names and marks in signing any contract, applying for licenses or permits, or in any manner that could result in Beehive Homes' liability for the franchisee's debts or obligations. The franchisee is barred from using the names and marks in any way that has not been expressly authorized.
Neither Beehive Homes nor the franchisee will make any agreements, warranties, guarantees, or representations, or incur any debt in the name or on behalf of the other, unless expressly authorized in writing. Both parties must represent their relationship accurately as franchisor and franchisee. Beehive Homes is not obligated for any damages to any person or property arising from the operation of the franchisee's home or business.
Furthermore, Beehive Homes and its affiliates bear no liability for any taxes, including sales, use, service, occupation, excise, gross receipts, income, or property taxes, related to the franchisee's business. The franchisee is solely responsible for the payment of all such taxes. This reinforces the independent contractor relationship and ensures that franchisees understand they are operating their own business and are responsible for all associated liabilities and obligations.