If Beehive Homes modifies the Names and Marks, what is Beehive Homes' obligation to the franchisee?
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, if Beehive Homes decides to modify or discontinue the use of any of its Names and Marks, or to use additions or substitutes for them, the franchisee must comply with these changes. Beehive Homes' sole obligation in this case is to reimburse the franchisee for the actual costs incurred in changing signs and replacing printed materials to align with the new Names and Marks.
This means that while Beehive Homes has the right to change its branding, franchisees are not left to bear the financial burden of these changes entirely on their own. However, the reimbursement is limited to the actual costs of changing signs and printed matter, so franchisees should carefully document these expenses to ensure proper compensation. This obligation provides a degree of financial protection for franchisees when Beehive Homes makes branding changes.
It is important for prospective franchisees to understand that they must implement any changes to the Names and Marks that Beehive Homes deems necessary. Failure to do so could result in a breach of the franchise agreement. While Beehive Homes covers the direct costs of these changes, franchisees should consider potential indirect costs or business disruptions that may arise during the rebranding process. Franchisees should seek clarity regarding the process for submitting and receiving reimbursement for these expenses.