factual

From whom did Beehive Homes receive the right to use or license the trademarks?

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

WE have been granted an exclusive right, pursuant to our agreement with Bee Hive Homes of America, Inc. which is described in Item 1, first paragraph under the heading - Affiliates, in this Franchise Disclosure Document, to use or license the use of the trademarks, service marks, trade names, logotypes or other commercial symbols in any manner material to the franchise. The termination, expiration or nonrenewal of our license agreement will not affect your rights to use of the trademarks, service marks and trade names as described in YOUR Franchise Agreement with US.

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.

Source: Item 13 — TRADEMARKS (FDD pages 22–23)

What This Means (2025 FDD)

According to Beehive Homes' 2025 Franchise Disclosure Document, Beehive Homes has been granted an exclusive right to use or license the use of its trademarks, service marks, trade names, logotypes, or other commercial symbols from Bee Hive Homes of America, Inc. This right is based on an agreement described in Item 1 of the FDD under the heading "Affiliates."

This means that Beehive Homes, as the franchisor, does not directly own the trademarks but has secured the rights to use and sublicense them to its franchisees through an agreement with Bee Hive Homes of America, Inc. For a prospective franchisee, this arrangement is important because their right to use the Beehive Homes branding depends on the validity and continuation of this agreement. However, the FDD states that the termination, expiration, or nonrenewal of the license agreement between Beehive Homes and Bee Hive Homes of America, Inc. will not affect the franchisee's rights to use the trademarks as described in the Franchise Agreement.

It is also important to note that franchisees must inform Beehive Homes of any claims or suits related to the use of trademarks. While Beehive Homes has the right to defend such claims, they are not obligated to do so, leaving the franchisee with the option to protect themselves at their own cost. This highlights a potential risk for franchisees, as they may need to bear legal expenses related to trademark protection.

Furthermore, Beehive Homes retains the discretion to modify or discontinue the use of any names and marks, or to introduce additions or substitutes. In such cases, Beehive Homes' sole obligation is to reimburse franchisees for the tangible costs of changing signs and printed materials to comply with these changes. This provision ensures that franchisees are not left entirely responsible for rebranding expenses if Beehive Homes decides to alter its trademarks.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.