What happens if a provision of the arbitration article in the Beehive Homes agreement is unenforceable?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
If any provision of this Article is unenforceable, that provision is severable from the remainder of this Article, and the balance of this Article shall remain in full force and effect. In addition, any ruling invalidating any other portion of this Agreement shall not affect the validity of this Article.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if any part of the arbitration article is deemed unenforceable, that specific part will be removed from the article. However, the rest of the arbitration article will still be valid and in effect.
This means that even if a specific clause within the arbitration agreement is found to be invalid, the overall agreement to arbitrate disputes remains binding. This ensures that most disputes will still be resolved through arbitration, maintaining the intended process for conflict resolution.
Additionally, the document states that if any other part of the overall agreement is invalidated, it will not impact the validity of the arbitration article. This clause is designed to keep the arbitration process intact even if other parts of the franchise agreement are successfully challenged.