If Beehive Homes modifies the Names and Marks, is the franchisee required to comply?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees must comply if Beehive Homes decides to modify or discontinue the use of any Names and Marks. The document states that if Beehive Homes finds it advisable to modify or discontinue any Names and Marks, or use additions or substitutes, the franchisee must comply with these changes.
Beehive Homes' sole obligation in such an event is to reimburse the franchisee for the actual costs incurred in changing signs and replacing printed materials to comply with the change. This reimbursement is limited to the direct costs of these physical changes, and does not extend to any other potential losses or expenses the franchisee might experience due to the brand modification.
This clause ensures that Beehive Homes retains control over its brand identity and can adapt its trademarks and service marks as needed. While franchisees are obligated to implement these changes, the franchisor mitigates the financial impact by covering the direct costs of updating signage and printed materials. Prospective franchisees should consider this potential cost and the implications of brand changes when evaluating the franchise opportunity.