In the National Fair Housing Alliance lawsuit against Beehive Homes, what was the alleged violation?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
On May 15, 2020, a Complaint was filed in the U.S. District Court for the District of Utah (Civil Action No. 2:20-CV-00312-DBP) by the National Fair Housing Alliance against Bee Hive Homes, Inc. and one of its franchise homes in Utah alleging discrimination in violation of The Fair Housing Act ("FHA'"), 42 U.S.C. §3602; Section 504 of the Rehabilitation Act of 1973 ("RA"), 29 U.S.C. §794; and Section 1557 of the Patient Protection and Affordable Care Act ("'ACA"), 42 U.S.C. §18116 against fictitious deaf persons. Bee Hive Homes, Inc. denied any liability in the matter. The matter was settled and on March 26, 2021, the Court entered its Order granting a motion for dismissal with prejudice and retention of jurisdiction by the Court to enforce the settlement agreement if needed.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, a complaint was filed on May 15, 2020, by the National Fair Housing Alliance against Bee Hive Homes, Inc. and one of its franchise homes in Utah. The complaint, filed in the U.S. District Court for the District of Utah, alleged discrimination against fictitious deaf persons.
The lawsuit claimed violations of The Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, and Section 1557 of the Patient Protection and Affordable Care Act. Beehive Homes, Inc. denied any liability in the matter.
The case was settled, and on March 26, 2021, the Court granted a motion for dismissal with prejudice, retaining jurisdiction to enforce the settlement agreement if necessary. This means that while Beehive Homes resolved the legal dispute, a prospective franchisee should be aware of the potential for discrimination claims and the importance of adhering to fair housing laws.