Can process or notice of motion for the Beehive Homes Guaranty be served outside of Utah?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Jurisdiction. The parties hereby irrevocably accept in respect of their persons and their property, generally and unconditionally, the jurisdiction of the courts of the State of Utah, in the County of Salt Lake, or the United States District Court for the District of Utah, consent to venue in Salt Lake County, Utah, and further consent that any process or notice of motion or other application to any court or a judge thereof, may be served outside the State of Utah by certified mail or by personal service, provided a reasonable time for appearance is allowed.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, the Guaranty agreement specifies that legal processes or notices of motion can indeed be served outside the state of Utah. Specifically, the document states that the parties involved consent to the jurisdiction of Utah courts but also agree that any legal process can be served outside of Utah. This is done either through certified mail or personal service, provided that the recipient is given a reasonable amount of time to respond or appear in court. This clause applies to both the Guaranty and the Franchise Agreement itself.
This provision is significant for a prospective Beehive Homes franchisee because it clarifies how legal proceedings related to the franchise or the Guaranty will be handled. Even if the franchisee or guarantor is located outside of Utah, they can be served legal documents related to the Beehive Homes franchise agreement via certified mail or personal service. This means a franchisee might have to engage legal counsel in Utah or travel to Utah for court proceedings, even if their Beehive Homes location is in another state.
It is important to note that while Beehive Homes specifies Utah law as the governing law for the franchise agreement, this jurisdiction clause does not prevent Beehive Homes from pursuing arbitration to resolve disputes. The FDD states that the consent to jurisdiction in Utah courts does not negate the rights of the parties to enforce the agreement through arbitration. Franchise agreements often include clauses specifying governing law and jurisdiction to provide clarity and predictability in case of legal disputes. Prospective franchisees should be aware of these clauses and understand their implications, especially if they are located far from the specified jurisdiction.