What happens to any claims a Beehive Homes franchisee may have related to disputes regarding the Names and Marks?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, a franchisee assigns to Beehive Homes any claims they may have related to disputes concerning the use of Names and Marks. Beehive Homes acts as the franchisee's attorney-in-fact to handle these disputes, with decisions regarding prosecution, defense, or settlement being final and at Beehive Homes' sole discretion. Any financial recoveries resulting from these disputes will be for Beehive Homes' account.
This means that if a franchisee encounters any infringement or challenges to the use of Beehive Homes' Names and Marks, they must immediately notify Beehive Homes and cannot communicate with any other party about the issue without a court order or Beehive Homes' written consent. The franchisee is obligated to cooperate fully with Beehive Homes in these matters and must sign any documents deemed necessary by Beehive Homes to resolve the dispute or protect the Names and Marks.
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 cover any other expenses the franchisee incurs while cooperating with Beehive Homes. This arrangement gives Beehive Homes complete control over the handling of trademark and intellectual property disputes, centralizing the management and protection of their brand assets.
This is a fairly standard practice in franchising, as franchisors typically want to maintain tight control over their brand and trademarks. However, it's important for franchisees to understand that they are giving up control over any legal claims related to the Names and Marks and that any financial benefits from such claims will go to Beehive Homes.