What governing law applies to disputes relating to the Guaranty for Beehive Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
a. Governing Law. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. ¶ 1050 et seq.), as amended, this Guaranty and any and all disputes relating to this Guaranty will be governed by and construed in accordance with the substantive laws of the State of Utah without regard to laws of conflict or choice of laws of the State of Utah or of any other jurisdiction that would result in the application of any laws other than those of the State of Utah.
- b. Jurisdiction. The parties hereby irrevocably accept in respect of their persons and their property, generally and unconditionally, the jurisdiction of the courts of the State of Utah, in the County of Salt Lake, or the United States District Court for the District of Utah, consent to venue in Salt Lake County, Utah, and further consent that any process or notice of motion or other application to any court or a judge thereof, may be served outside the State of Utah by certified mail or by personal service, provided a reasonable time for appearance is allowed.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the laws of the State of Utah govern the Guaranty. Specifically, any disputes related to the Guaranty will be interpreted and resolved under Utah's substantive laws. This is with the exception of matters governed by the United States Trademark Act of 1946 (Lanham Act). The application of Utah law will occur without regard to any conflict or choice of laws principles that might otherwise lead to the application of another jurisdiction's laws.
This means that if a dispute arises concerning the Guaranty, such as a disagreement over payment obligations, the case will be decided based on Utah state law. This provides a level of predictability for franchisees, as the legal framework is predetermined. However, franchisees outside of Utah may need to familiarize themselves with Utah law, potentially incurring additional legal expenses if a dispute arises.
Furthermore, the FDD specifies that parties involved in disputes related to the Guaranty irrevocably accept the jurisdiction of the courts within the State of Utah, specifically in Salt Lake County, or the United States District Court for the District of Utah. This means that any legal action must be brought in these courts, regardless of where the franchisee's Beehive Homes location is situated. This could increase costs for franchisees located far from Utah, as they would need to travel for court appearances and potentially hire local counsel.