Does Beehive Homes hold rights to the Names and Marks used for the Homes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Franchisor has developed and holds rights to the Names and Marks (as defined below) used for the Homes and licenses the use of said Names and Marks in connection with the franchising of the Homes and the System.
6.2. Ownership and Use of Names and Marks, Trade Secrets and Copyrighted Materials. Franchisee acknowledges and agrees that the Names and Marks, Trade Secrets and Copyrighted Materials are validly owned by Franchisor and that Franchisee has only the nonexclusive right to use such Names and Marks, Trade Secrets, and Copyrighted Materials as provided in this Agreement. Franchisee further acknowledges and agrees that Franchisor's rights to the Names and
Marks, Trade Secrets and Copyrighted Materials are acquired by license from its Affiliate. Franchisee further acknowledges and agrees that all trademarks, service marks, trade names, including the Trade Name, and copyrights, together with all ancillary signs, symbols, slogans, phrases, emblems, designs and other indicia developed by or for Franchisee for use in connection with the Home and the System are the sole and exclusive property of Franchisor and may be used by Franchisee only during the Term of this Agreement and only as provided in this Agreement. Immediately upon termination or expiration of this Agreement, the Franchisee shall cease and desist from using said Names and Marks, Trade Secrets and Copyrighted Materials and shall return to Franchisor or destroy, at the Franchisor's election, all documents, instructions, displays, and advertising items and the like relating to the Names and Marks, Trade Secrets and Copyrighted Materials.
(d) ProprietaryNotices. Franchisee shall use the Names and Marks only with the symbols "TM," "SM," or "R", as appropriate, whenever and wherever such Names and Marks are used. In addition, the Franchisee shall not use its own name or any other name in connection with any of the Names and Marks without the prior written consent of Franchisor or Franchisor.
(g) Modification of Names and Marks. Franchisee acknowledges and agrees that if at any time it becomes advisable in the sole discretion of the Franchisor to modify or discontinue any use of the Names and Marks and/or use one or more additions to or substitutes for the Names and Marks, the Franchisee shall do so and the Franchisor's sole obligation in such event will be that Franchisor reimburse the Franchisee for actual costs in changing signs and replacing printed matter to comply with any change.
(a) Ownership of Goodwill. Franchisee acknowledges and agrees that any and all goodwill associated with the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials, including any goodwill that might be deemed to have arisen through Franchisee's activities, shall inure directly and exclusively to the benefit of, and be owned solely by, Franchisor, except as otherwise provided herein or by applicable law.
2.13. "Names and Marks" means the trade name, trademark or service mark "BEE HIVE HOMES®", the Trade Name and such other or similar names, service marks, trademarks, trade names and copyrights, together with all ancillary signs, symbols, slogans, phrases, emblems, designs and other indicia as are indicated by Franchisor and used in connection with the Home and the System.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Beehive Homes has developed and holds the rights to the Names and Marks used for the Homes. These Names and Marks are licensed in connection with the franchising of the Homes and the System. The FDD defines "Names and Marks" as the trade name, trademark, or service mark "BEE HIVE HOMES®", the Trade Name, and other similar names, service marks, trademarks, trade names, and copyrights, along with all ancillary signs, symbols, slogans, phrases, emblems, designs, and other indicia as indicated by Beehive Homes and used in connection with the Home and the System.
As a franchisee, you acknowledge that Beehive Homes validly owns the Names and Marks. Your right to use them is nonexclusive and is granted as per the franchise agreement. You must use the appropriate symbols (TM, SM, or R) with the Names and Marks. You are also prohibited from using your own name or any other name in conjunction with the Names and Marks without prior written consent from Beehive Homes. Upon termination or expiration of the franchise agreement, you must immediately cease using the Names and Marks and return or destroy all related materials as directed by Beehive Homes.
Beehive Homes retains the right to modify or discontinue the use of any Names and Marks. If changes are required, Beehive Homes will reimburse you for the actual costs of changing signs and replacing printed materials to comply with the changes. Additionally, any goodwill associated with the Home, the System, the Names and Marks, Trade Secrets, and Copyrighted Materials will inure directly and exclusively to the benefit of and be owned solely by Beehive Homes. This means that while you operate your franchise, the reputation and customer recognition you build contribute to the overall brand value of Beehive Homes, not to your individual equity beyond the terms of the agreement.
These stipulations are typical in franchising, as they protect the franchisor's brand identity and ensure consistent brand representation across all franchise locations. For a prospective franchisee, it is crucial to understand that while you are granted the right to use the Beehive Homes brand, you do not own any part of it and must adhere strictly to the franchisor's guidelines. This includes how the brand is displayed, marketed, and used in all aspects of your business operations. Failing to comply can result in a breach of the franchise agreement and potential termination of your franchise.