What was the outcome of the National Fair Housing Alliance lawsuit against Beehive Homes?
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 the 2025 Beehive Homes Franchise Disclosure Document, a lawsuit was filed on May 15, 2020, in the U.S. District Court for the District of Utah by the National Fair Housing Alliance against Beehive Homes, Inc., and one of its franchise homes in Utah. The lawsuit alleged discrimination against fictitious deaf persons in violation 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 lawsuit was settled, and on March 26, 2021, the Court granted a motion for dismissal with prejudice. The Court also retained jurisdiction to enforce the settlement agreement if needed. This means the case was resolved out of court, with the claims dismissed, but the court could intervene if the settlement terms are not followed.
For a prospective Beehive Homes franchisee, this information indicates that Beehive Homes has faced legal challenges related to fair housing. While the case was settled and dismissed, it highlights the importance of adhering to fair housing laws and ensuring non-discrimination in the operation of a Beehive Homes franchise. Franchisees should ensure they understand and comply with all applicable laws to avoid similar legal issues.