What is the process for a Beehive Homes franchisee to notify the franchisor about potential trademark infringement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
YOU must notify US in writing of any claim, demand or suit based upon or in connection with any or all rights which YOU have to use the trademarks, service marks, trade names, logotypes or commercial symbols. YOU must also notify US in writing of the use of, or claims of rights to, a trademark identical to or confusingly similar to the names and marks. WE have the right to defend any such claims, demands or suits. However, WE are not obligated by the Franchise Agreement or otherwise to protect YOU against any such claim, demand or suit, nor are WE obligated by the Franchise Agreement or otherwise to protect YOU against claims of infringement or unfair competition. YOU are given the right to protect YOURSELF, at YOUR sole cost, from any claims if WE elect not to.
If at any time it becomes advisable in OUR sole discretion 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, YOU will do so and OUR sole obligation will be to reimburse YOU for tangible costs in changing signs and printed matter to comply with this obligation.
There are no infringing uses actually known to US which could materially affect YOUR use of the trademarks, service marks, trade names, logotypes or commercial symbols.
Source: Item 13 — TRADEMARKS (FDD pages 22–23)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, if a franchisee becomes aware of potential trademark infringement, they must notify the franchisor, referred to as "US," in writing. This notification is required for any claim, demand, or suit related to the franchisee's rights to use the trademarks, service marks, trade names, logotypes, or commercial symbols. Additionally, the franchisee must inform Beehive Homes in writing about any use of, or claims of rights to, a trademark that is identical or confusingly similar to the Beehive Homes names and marks.
Beehive Homes retains the right to defend any such claims, demands, or suits, but the Franchise Agreement does not obligate them to protect the franchisee against infringement claims or unfair competition. This means that while Beehive Homes may choose to take action, the franchisee should be prepared to protect their own interests at their own expense if Beehive Homes elects not to intervene. This is a fairly typical arrangement in franchising, where the franchisor owns the trademarks but the franchisee operates the business locally and may be the first to encounter potential infringement.
Furthermore, Beehive Homes has the discretion to modify or discontinue the use of any names and marks, or to add or substitute new ones. If such changes are made, the franchisee is obligated to comply, and Beehive Homes will only reimburse the franchisee for the tangible costs of changing signs and printed materials. The FDD states that there are no known infringing uses that could materially affect the franchisee's use of the trademarks, service marks, trade names, logotypes, or commercial symbols.
In summary, a Beehive Homes franchisee must promptly provide written notice to the franchisor of any potential trademark infringement. While Beehive Homes has the right to defend the trademark, they are not obligated to do so, leaving the franchisee potentially responsible for their own legal defense costs. This highlights the importance of franchisees understanding their rights and responsibilities regarding trademark protection and being prepared to take action if necessary.