Does Beehive Homes reimburse a franchisee for all expenses incurred while cooperating with the franchisor in infringement disputes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (i) Franchisee will immediately notify Franchisor of any infringement or dilution of or challenge to its use of any of the Names and Marks and will not, absent a court order or Franchisor's prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim. Franchisor will take the action it deems appropriate with respect to such challenges and claims and has the sole right to handle disputes concerning use of all or any part of the Names and Marks or the System. Franchisee will fully cooperate with Franchisor and its Affiliates in these matters. Franchisor will reimburse Franchisee for expenses incurred by it as the direct result of activities undertaken by it at Franchisor's prior written request and specifically relating to the dispute at issue. Franchisor will not reimburse Franchisee for any other expenses incurred by it for cooperating with Franchisor or its Affiliates.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, franchisees are not reimbursed for all expenses incurred while cooperating with the franchisor in infringement disputes. Beehive Homes requires franchisees to notify them immediately of any infringement or challenges to the use of their Names and Marks. The franchisor has the sole right to handle these disputes.
Beehive Homes franchisees are expected to fully cooperate with the franchisor and its affiliates in these matters. However, Beehive Homes will only reimburse a franchisee for expenses incurred as a direct result of activities undertaken at the franchisor's prior written request and specifically related to the dispute.
This means that if a franchisee takes actions on their own without prior written approval from Beehive Homes, they will not be reimbursed for those expenses. This could include legal fees, investigation costs, or other costs associated with assisting in the dispute. Franchisees should ensure they receive written approval before incurring any expenses they expect to be reimbursed.