Can the Beehive Homes franchisor represent that their relationship with the franchisee is other than franchisor and franchisee?
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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, neither Beehive Homes nor the franchisee can represent that their relationship is anything other than franchisor and franchisee. The franchise agreement explicitly states that they are independent contractors and not joint venturers, partners, employees, servants, or agents of each other. This reinforces the arms-length nature of the franchise relationship.
Beehive Homes is not liable for any franchisee's debts, obligations, or unauthorized representations. The franchisee must acknowledge that they are independently owned and operated in all dealings with customers, suppliers, public officials, and employees. This is a common provision in franchise agreements to protect the franchisor from liabilities incurred by the franchisee.
This section of the FDD clarifies the legal standing of the franchisee as an independent entity. It ensures that the franchisee understands they are responsible for their own business operations and obligations, and it prevents them from creating any implied liability for Beehive Homes. Prospective franchisees should understand this independent contractor relationship, as it dictates how they operate their Beehive Homes location and manage their business liabilities.