If Assignee's Name contains a Beehive Homes trademark, what must the Assignor, Assignee, and Shareholders/Partners/Members covenant and agree to?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If Assignee's name or the name of any trust or entity with an equity interest in Assignee (collectively "Assignee's Name") contains any reference to "Bee Hive", "BeeHive", or any derivative thereof, or any other Bee Hive Homes trademark, then Assignor, Assignee, and [Shareholders/Partners/Members] covenant and agree (i) that they will cause Assignee's Name to be changed, within 30 days after the Effective Date, to delete any such reference without further consideration from Bee Hive Homes; (ii) that they will not challenge Bee Hive Homes use of any trade name, trademark, or internet domain name on the grounds that it: (a) is similar to Assignee's Name; (b) is likely to cause confusion; or (c) dilutes the value of the trade name; and (iii) that Assignee's Name shall not be used in connection with any trade or business conducted by Assignor, Assignee, or [Shareholders/Partners/Members] except the Bee Hive Homes Franchise business.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if the Assignee's name contains any reference to "Bee Hive", "BeeHive", or any derivative thereof, or any other Beehive Homes trademark, then the Assignor, Assignee, and Shareholders/Partners/Members must agree to the following conditions.
First, they must change the Assignee's name within 30 days of the effective date to remove any reference to the Beehive Homes trademark. This name change must occur without any additional compensation from Beehive Homes. This ensures that the new entity's name does not infringe upon or dilute the Beehive Homes brand.
Second, the parties must agree not to challenge Beehive Homes' use of any trade name, trademark, or internet domain name. This includes agreeing not to claim that Beehive Homes' trademarks are similar to the Assignee's name, likely to cause confusion, or dilute the value of the trade name. This provision protects Beehive Homes from potential legal disputes over trademark usage. Finally, the Assignee's name cannot be used in connection with any trade or business conducted by the Assignor, Assignee, or Shareholders/Partners/Members, except for the Beehive Homes Franchise business. This prevents the unauthorized use of the Beehive Homes name in other ventures, maintaining the brand's exclusivity and integrity.